Bank of Lithuania

In April 2002, the balance of payments current account deficit made up LTL 422.9 million. This represented the largest deficit during the first four months this year. Compared to March, it widened by LTL 401 million, and compared to April 2001, by LTL 31.2 million. Based on the data for individual months, the current account deficit in January?April 2002 made up LTL 898.1 million (LTL 938 million in January?April 2001). The widening of the current account deficit in April was caused by a higher foreign trade deficit and increased payments to non-residents for Government securities.

In April 2002, compared to April 2001, export of goods increased by 22.4 percent, while compared to March 2002 it went down by 0.3 per cent. The growth of the export of goods was mostly determined by higher growth in the export of vehicles and food products. Imports of goods (at f.o.b. prices) increased by 20.1 per cent and 14.7 per cent, respectively.

Compared to March, export of services increased in April by 2 per cent, while import of services increased by 7.4 per cent. Compared to April 2001, similar growth was recorded in both export and import of services, 7.2 per cent and 7.3 per cent, respectively. The total positive balance of services in April 2002, as compared to March 2002, declined by LTL 8.6 million, yet it increased by LTL 9.2 million compared to April 2001.

In April 2002, interest payments to non-residents on Government eurobonds amounted to LTL 68 million. In addition, following the general shareholders meetings held in many companies, which distributed the profit earned in 2001, the payments of domestic economic entities to non-residents for their investment in Lithuania went up. Owing to the above reasons, the deficit of the income balance increased by LTL 77.6 million, compared to March.

The positive capital and financial account balance made up LTL 505.4 million. Foreign assets of domestic economic entities (financial claims to non-residents), excluding international reserves, increased by LTL 148.6 million in April, while international liabilities went up by LTL 710 million.

In April domestic commercial banks acquired LTL 188.5 million of non-resident debt securities, which pushed up total foreign investment by domestic economic entities.

Foreign direct investment flows in April made up LTL 121.3 million, and were LTL 584.4 million in January through April, which, according to preliminary data, was higher by LTL 65.2 million than foreign direct investment during the same period of 2001.

Portfolio investment inflows were not large and made up LTL 12.5 million. Meanwhile, other foreign investment flows amounted to LTL 588.6 million. Bank of Lithuania repo transactions with non-residents increased in April 2002 by LTL 170.4 million, while trade credit granted by non-residents went up by approximately LTL 400 million.