Bank of Lithuania

In June 2002, the Current Account Deficit (CAD) stood at LTL 278.2 million. It contracted by LTL 96.7 million compared to May 2002. According to the preliminary data of April-June 2002, the CAD in the 2nd quarter of the same year comprised LTL 1.08 billion. Compared to the 1st quarter of 2002, this indicator grew by LTL 669.1 million. The CAD increase in the 2nd quarter of the year was caused by a higher deficit of foreign trade balance.

In June 2002, merchandise exports contracted by 11.3 per cent compared to May 2002, and these exports decreased by 0.5 per cent compared to June 2001. Merchandise imports (f.o.b.) diminished by 10.7 per cent compared to May 2002, and expanded by 10.6 per cent compared to June 2001. According to preliminary data, foreign trade deficit of the 2nd quarter of 2002 augmented by LTL 674.6 compared to the 1st quarter of the same year.

In June 2002, exports of services rose by 9 per cent, and imports of services - by 7 per cent, compared to May 2002. The increase of exports of services was mainly caused by a larger amount of travel income that rose by more than LTL 30 million. Compared with June 2001, exports and imports of services augmented by 3.5 and 2.8 per cent, correspondingly. The positive balance of services in June 2002, compared with May 2002, increased by LTL 19.6 million, and compared to June 2001, it rose by LTL 7.9 million.

In June 2002, compared with May, dividends paid by national economic entities to non-residents for their investments in Lithuania reduced up LTL 13 million, and interest rates earned on Eurobonds and loans received on behalf of the State curtailed LTL 21 million and 23 million, respectively, thus decreasing the total negative balance of income by LTL 67.5 million.

In June 2002, the balance of the Capital and Financial Account was positive and made up LTL 14.6 million. In June 2002, foreign assets of national economic entities (financial claims to non-residents), excluding reserve assets, increased by LTL 177.4 million, and international financial liabilities grew by LTL 541.5 million.

A positive total flow of foreign investment flow into Lithuania in June was caused by a large flow of direct foreign investment. In June, this flow amounted to LTL 763.9 million, and in January-June it stood at LTL 1.3 billion. According to preliminary data, the flow of direct foreign investment was by LTL 228.2 million higher than that of a corresponding period 2001. The increase of direct foreign investment in June 2002 was caused by a successful privatization of the Joint-Stock Company “ Lietuvos dujos” and investments of the Russian Joint-Stock Company “Yukos Oil Corporation” into the Joint-Stock Company “ Ma?eikių nafta”.

In June 2002, portfolio investment income in Lithuania reached only to LTL 27.9 million, whereas the flow of other foreign investment into the country (debt for goods and services, net foreign loans received, etc.) was negative and equal to LTL 232.7 million. The largest portion (LTL 196 million) of the negative foreign investment flow fell to a lower number of repurchase agreements concluded by the Bank of Lithuania with non-residents.

The decrease of repurchase agreements between the Bank of Lithuania and non-residents resulted in a curtailment of reserve assets. However, the amount of foreign currency purchased by the Bank of Lithuania from commercial banks exceeded the amount sold by LTL 548.8 million. Therefore, total flow of reserve assets in the Balance of Payments reached almost LTL 354 million in June 2002.