2006-08-29
At the end of July 2006, M3 amounted to LTL 32.7 billion, increasing by LTL 808.7 million (a rise of LTL 843.4 million as a result of transactions) over a month. The annual growth rate of M3 was 26.7 per cent at the end of July. M2, which accounts for the largest part of M3, grew by LTL 839.9 million over a month (a rise of LTL 869.1 million as a result of transactions) to make up LTL 32.0 billion at the end of July. The annual growth rate of M2 was 24.2 per cent at the end of July. M1 increased by LTL 426.7 million (a rise of LTL 440.9 million as a result of transactions) over a month to make up LTL 21.9 billion at the end of July, a hike of 22.6 per cent over twelve months.
An increase in M3 in July as a result of transactions was driven by an increase in deposits with an agreed maturity of up to 2 years by LTL 422.5 million, overnight deposits by LTL 220.8 million, currency in circulation by LTL 220.1 million, and deposits redeemable at a period of notice of up to 3 months by LTL 5.7 million. However, a decline of LTL 25.6 million in debt securities with a maturity of up to 2 years as a result of transactions made M3 go down.
In July, the net external assets of MFIs rose by LTL 2.1 billion as a result of transactions, while domestic credit contracted by LTL 1.3 billion. The annual growth rates of these indicators were different at the end of July. Net external assets shrank by 46.4 per cent over the year, while domestic credit grew by 52.8 per cent. The increase of the net external assets of MFIs as a result of transactions was mostly determined by a rise of LTL 1.9 billion in net external assets of other MFIs.
In July a drop of LTL 1.3 billion in MFIs loans led to a decline in domestic credit to other residents because of transactions. The annual growth rate of these loans made up 57.7 per cent at the end of July. Loans to financial intermediaries of other MFIs went down by LTL 2.3 billion over a month as a result of transactions. Loans to non-financial corporations increased LTL 473.0 million showing an annual growth rate of 49.1 per cent at the end of July. As a result of transactions, loans to households of other MFIs increased by LTL 565.2 million over a month, a year-on-year growth of 82.4 per cent at the end of July. Consumer loans to households rose by LTL 69.0 million, lending for house purchase grew by LTL 323.7 million, and other loans went up by LTL 172.5 million over a month. The annual growth rate of lending for house purchase was 77.3 per cent at the end of July.
Central government deposits decreased by LTL 100.2 million as a result of transactions with their annual growth rate making up 4.5 per cent at the end of July. Longer-term financial liabilities of MFIs soared by LTL 197.9 million over a month, a year-on-year increase of 40.9 per cent. The increase in longer-term financial liabilities of MFIs in July was driven by a LTL 109.1 million rise in capital and reserves, as a result of transactions, a surge of LTL 81.1 million in debt securities with maturity of over 2 years, and a hike of LTL 7.7 million in deposits with an agreed maturity of over 2 years.