2003-10-13
In August 2003, the Balance of Payments current account balance was positive amounting to LTL 104.9 million. Over the eight months of 2003, this was the third positive monthly current account balance (in addition to January and February). Compared to July 2003, the current account balance improved by LTL 285.4 million, while in comparison with August 2002 the improvement amounted to LTL 127.2 million. The positive size of the balance was determined by the contraction of the foreign trade deficit.
According to the data of the Department of Statistics, in August 2003, compared to July 2003, export of goods increased by 6.3 per cent, while import contracted by 13.7 per cent. Compared to the same period last year, in August 2003 export of goods increased by 18.5 per cent, while import grew by 7.2 per cent.
Compared to July 2003, export of services increased in August by 9 per cent, while import of services increased by 11.4 per cent. The positive balance of services amounted to LTL 180.4 million (LTL 171.7 million in July). Compared to August 2002, export of services decreased by 3.1 per cent, while import of services increased by 1.3 per cent. The positive services balance contracted over the period under comparison by LTL 20.4 million.
Payments to non-residents (on their investment in Lithuania) in August 2003 exceeded the income from Lithuania’s investment abroad by LTL 39.2 million. In addition, the positive balance of compensation of employees declined in August. For the above reason, the total income balance was negative in August (LTL -28.4 million). Compared to August 2002, the total negative income balance increased by LTL 3.2 million.
The balance of current transfers declined by LTL 32 million in August 2003, in comparison with July, and amounted to LTL 26.4 million.
The capital and financial account balance was positive in August, making up LTL 78.3 million. Foreign assets of domestic economic entities (financial claims to non-residents), excluding international reserves, grew in August by LTL 210.5 million, while international financial liabilities went up by LTL 435.2 million. The balance of capital transfers amounted to LTL 12.4 million in August.
Foreign assets of domestic commercial banks increased by LTL 90.2 million in August. The largest increase was recorded in commercial bank deposits and correspondent account balances with foreign banks. Foreign assets of other sectors went up by LTL 120.3 million.
Foreign direct investment flows amounted to LTL 103.5 million in August 2003 in Lithuania, of which the largest (LTL 89 million) were non-resident investments in equity capital (acquisition of blocks of shares by non-residents).
The investment portfolio of non-residents contracted by LTL 17.1 million in August. Over the month under review, non-resident secondary market acquisitions of debt securities issued in Lithuania amounted to LTL 29.2 million, while, equity securities issued in Lithuania and held by non-residents contracted by LTL 12 million. Other non-resident investment grew in August by LTL 316.5 million. This was a result of the loans received by domestic commercial banks from non-residents and the increased time deposits of non-residents in Lithuanian banks.
The positive international reserve flows in the balance of payments were LTL 158.8 million in August 2003. The main reason behind the increase was central government institution operations in foreign exchange with the Bank of Lithuania and an LTL 88.8 million increase of repo transactions with non-residents. Reserves were also boosted by the net income of the Bank of Lithuania from investment in foreign exchange.
A factor reducing international reserves was the net sale of foreign exchange to commercial banks of LTL 23.1 million.