Bank of Lithuania

Key October results.In October 2002, the balance of payments current account deficit (CAD) made up LTL 271.6 million.Compared to September, it widened by LTL 110.2 million, and compared to October 2001, by LTL 63.6 million.The expansion of the CAD in October was mostly determined by the widening of foreign trade deficit and the decline of non-repayable current transfers from abroad.

According to the data of the Department of Statistics, in October 2002, compared to September, export of goods increased by 7.7 per cent, while import of goods grew by 18.6 per cent.In October 2002, compared to the same period last year, export of goods increased by 13.9 per cent, while import of goods grew by 14.7 per cent.

Export of services and the positive balance of services continued to decline (albeit only slightly) in October.Compared to September, export of services contracted by 0.4 per cent.Meanwhile, the import of services increased by 7.1 per cent during the review period.Compared to October 2001, export and import of services increased by 14.2 per cent and 0.6 per cent, respectively.Compared to September 2002, the positive balance of services went down by LTL 20 million in October 2002 and increased by LTL 56.1 million compared to October 2001.

In October 2002, compared to September, the negative income balance went up by LTL 1.7 million, while the positive balance of current transfers declined by LTL 36.7 million.The decline of the balance was determined by the fact that the receipts from EU support funds were lower by LTL 28.4 million in October.

The positive capital and financial account balance made up LTL 205.9 million.Foreign assets of domestic economic entities (financial claims to non-residents), excluding international reserves, went down by LTL 24.4 million in October, while international financial liabilities increased by LTL 412.6 million.In addition, non-repayable capital transfers from EU support funds amounted to LTL 17.3 million (LTL 36.9 million less than in September).

Foreign assets of domestic commercial banks went down by LTL 208.4 million, and foreign assets of other domestic economic entities increased by LTL 184 million.The decline of commercial bank foreign assets was determined an LTL 146.2 million decline of time deposits with foreign banks and an LTL 52.6 million contraction of investment into non-resident securities.The increase of foreign investment flows of other domestic economic entities was determined by a higher trade credit to non-residents.

Foreign direct investment flows made up LTL 123.8 million in October, while portfolio investment was negative at LTL 16.9 million.

In October, other non-resident investment in domestic commercial banks made up LTL 146.5 million, and in other sectors it amounted to LTL 209.3 million (mostly increased trade credit to non-residents).Total foreign loan flows received in the name of the state were negative during the month under review (more foreign loans were repaid) and stood at LTL 38.1 million.

The total positive international reserve flows in the balance of payments were LTL 248.4 million in October 2002.The main reason for the increase of international reserves was net purchases of the anchor currency by the Bank of Lithuaniathat pushed the reserves up by LTL 278.2 million.Operations with central government institutions and non-residents reduced international reserves by LTL 36.8 million and LTL 16.2 million, respectively.

Note.During the compilation of the quarterly balance of payments on the basis of more comprehensive quarterly data, monthly data will be revised.