Bank of Lithuania

Key September results.In September 2002, the balance of payments current account deficit (CAD) made up LTL 161.4 million.Compared to August, it expanded by LTL 63.9 million.According to the monthly balance of payment data from July to September, the CAD in the third quarter made up LTL 440.6 million.Compared to Q2 2002, it contracted by a factor of nearly 2.5.According to preliminary estimates, in Q3 2002 the CAD made up 3.3?3.5 per cent of GDP, while over the period from January to September, 5.2?5.3 per cent of GDP.

The expansion of the CAD in September was mostly determined by the widening of foreign trade deficit.In September 2002, compared to August, export of goods increased by 12.7 percent, while import of goods (at f.o.b. prices) grew by 17.1 percent.As over the previous months of 2002, the growth of the export of goods was slower in September, as compared to the same period of 2001: export of goods went up by 6.4 per cent, while import of goods (at f.o.b. prices) grew by 16 per cent.

Export of services continued to decline (albeit only slightly) in September.Compared to August, it contracted by 4.3 per cent.This decline was determined by the lower income from travel services export.The import of services contracted by 3.2 per cent during the review period.Compared to September 2001, export and import of services increased by 15.6 per cent and 12.8 per cent, respectively.Compared to August 2002, the positive balance of services went down by LTL 12.6 million and increased by LTL 34 million compared to September 2001.

In September 2002, compared to August, the negative income balance declined by LTL 22.6 million, and the positive balance of transfers went up by LTL 51.4 million.

The capital and financial account balance was positive in September, making up LTL 184.2 million.Foreign assets of domestic economic entities (financial claims to non-residents), excluding international reserves, grew in September by LTL 365 million, while international financial liabilities went up by LTL 53.3 million.In addition, non-repayable capital transfers from abroad (EU ISPA fund and received military equipment) amounted to LTL 89 million.

Foreign assets of domestic commercial banks went up by LTL 231.3 million in September, and foreign assets of other domestic economic entities grew by LTL 133.7 million.The growth of commercial bank foreign assets was determined an LTL 197.5 million increase of overnight deposits (which had gone down by LTL 397.6 million in August).The increase of foreign investment flows of other domestic economic entities was determined by the increased deposit and correspondent account balances with foreign banks.

Foreign direct investment flow made up LTL 139.6 million in September, while portfolio investment stood at LTL 0.84 million.According to preliminary estimates, in Q3 2002 the CAD coverage by foreign direct investment made up 85.4 per cent, while over the period from January to September this coverage amounted to slightly over 100 per cent of the CAD.

In September, other non-resident investment in domestic commercial banks made up LTL 65.2 million, and in other sectors it amounted to LTL 14.7 million.On the other hand, the negative flow of foreign loans received in the name of the state determined LTL 53.3 million overall foreign investment flows in Lithuania in September.

The total positive international reserve flows in the balance of payments were LTL 101.2 million in September 2002.The growth of international reserves was determined by the net purchase of the anchor currency by the Bank of Lithuania from commercial banks and transactions with central government institutions, increasing the reserves by LTL 35.2 million and LTL 34.6 million, respectively.The reserves were also pushed up by net inflows of the Bank of Lithuania from investment in foreign currencies and an LTL 12.5 million increase in Bank of Lithuania repurchase transactions with non-residents.

Note.During the compilation of Q3 balance of payments on the basis of more comprehensive quarterly data, monthly data will be revised.