2004-01-16
In November 2003, the Balance of Payments current account deficit (CAD) amounted to LTL 287.3 million (the CAD in October amounted to LTL 228.8 million). Compared to November 2002, the current account deficit went down by LTL 142.1 million. It was determined by a lower foreign trade deficit.
According to the data of the Department of Statistics, in November 2003, compared to October, export of goods decreased by 11.2 per cent, while import went down by 9.7 per cent. The foreign trade deficit contracted by LTL 38.9 million. In November 2003, compared to the same period last year, export of goods increased by 8.3 per cent, while import grew by 2.7 per cent.
Compared to October 2003, export of services increased in November by 4.5 per cent, while import of services grew by 2.7 per cent. The positive services balance increased by LTL 11.8 million. Compared to November 2002, export of services increased in November 2003 by 8.1 per cent, while import of services went up by 6.4 per cent. The positive balance of services improved over the period under comparison by LTL 16.4 million.
Payments to non-residents (on their investment in Lithuania) in November 2003 exceeded the income from Lithuania’s investment abroad by LTL 32.9 million. Interest payments to non-residents on loans received on behalf of the state were higher in November 2003 as compared to October, therefore, the income balance was negative. In addition, the total income balance improved by LTL 110.7 million compared to November 2002 and amounted to LTL 20.3 million.
The balance of current transfers declined by LTL 9 million in November 2003, in comparison with October, and amounted to LTL 31.9 million.
The positive capital and financial account balance made up LTL 540.2 million. Foreign assets of domestic economic entities (financial claims to non-residents), excluding reserve assets, grew in November by LTL 21.9 million, while international financial liabilities went up by LTL 264.3 million. The balance of non-repayable capital transfers amounted to LTL 4.2 million in November.
Foreign assets of domestic commercial banks increased by LTL 70.9 million in November 2003. The investment of commercial banks in non-resident securities went down by LTL 48.1 million in November, while other investment abroad (mostly deposits and correspondent accounts with foreign banks) increased by LTL 123.2 million. Foreign assets of other domestic economic entities decreased by LTL 49 million.
Foreign direct investment flows in Lithuania amounted to LTL 104.7 million in November 2003, of which the largest (LTL 85.9 million) were non-resident investments in equity capital. In addition, the inflows for privatised objects amounting to LTL 20.7 million were received from non-residents in November.
Non-resident investment portfolio in Lithuania grew by LTL 9.3 million in November. Over the period under review, non-residents acquired shares of domestic economic entities for the amount of LTL 20.3 million, however, their available debt securities issued in Lithuania contracted by LTL 11 million.
Other investment of non-residents in Lithuania grew by LTL 186 million in November. It was determined by the growth of the debt of domestic economic entities to non-residents for goods and services and the increase of foreign loans and non-resident time deposits in domestic commercial banks.
The positive reserve asset flows in the balance of payments amounted to LTL 293.6 million in November 2003 and it shows the decrease of reserve assets. The main reason for the decrease of international reserves was the operations of the Bank of Lithuania in foreign exchange with non-residents and the central government institutions. These operations reduced the reserves by LTL 195.7 million and LTL 121.9 million, respectively. The reserves were also reduced by the decline of the US dollar against the litas. The reserves were pushed up by Bank of Lithuania operations with commercial banks and net inflows from investment in foreign currencies.