Comparison of interest rates on loans and deposits in Lithuania and the euro area in September 2024: Lithuania remains among the euro area countries with the highest borrowing costs

Interest rates¹ on loans and new business² of deposits with agreed maturity of euro area credit institutions to euro area residents published by the ECB show that:

• a comparison of data of September and June 2024 shows a drop in all relevant interest rates, with the exception of interest rates on new business of loans to households for other purposes;
• in September 2024, the average interest rate offered to Lithuanian households (residents) for all agreed-term deposits have aligned with the euro area average;
• in three months,³ both the interest rates on loans granted by credit institutions operating in Lithuania to non-financial corporations (companies) and the average interest rates on these loans in the euro area decreased by 0.52 percentage points and 0.32 percentage points respectively, to 5.85% and 4.67%. In Lithuania, however, these rates are among the highest in euro area countries, i.e. 118 basis points above the euro area average (see Chart 1);

Chart 1. Interest rates on and volumes of new business of loans to non-financial corporations

• the interest rates on housing loans granted by credit institutions operating in Lithuania to households and their euro area average declined by 0.42 percentage points and 0.14 percentage points respectively in three months, to 5.02% and 3.59% respectively. Lithuania remained in the third position (see Chart 2);

Chart 2. Interest rates on and volumes of new business of household loans for house purchase

• the interest rates on loans for consumption granted by credit institutions operating in Lithuania to households dropped by 0.22 percentage points to 9.37%, while their euro area average increased by 0.07 percentage points to 7.75% over the same period. Nevertheless, Lithuania still remained in the fourth position (see Chart 3);

Chart 3. Interest rates on and volumes of new business of household loans for consumption

• the interest rates on loans for other purposes granted by credit institutions operating in Lithuania to households increased by 0.89 percentage points to 8.33%, while the average of interest rates in euro area countries dropped by 0.27 percentage points to 4.88%. Lithuania retained the second position among euro area countries in terms of interest rates (see Chart 4);

Chart 4. Interest rates on and volumes of new business of household loans for other purposes

• both the interest rates on non-financial corporation deposits with agreed maturity with credit institutions operating in Lithuania and their euro area average declined by 0.41 percentage points and 0.26 percentage points respectively in three months, to 2.99% and 3.28% respectively. Lithuania retained its tenth position in terms of interest rates, still remaining below the euro area average (see Chart 5);

Chart 5. Interest rates on and volumes of new business of non-financial corporation deposits with agreed maturity

• interest rates on household deposits with agreed maturity with credit institutions operating in Lithuania and their euro area average declined by 0.37 percentage points and 0.05 percentage points respectively in three months, to 2.98% and 2.98% respectively. Lithuania, which was in the sixth position, dropped to the tenth position, bringing it in line with the euro area average (see Chart 6).

Chart 6. Interest rates on and volumes of new business of household deposits with agreed maturity

¹ Weighted interest rates on new business during the reporting month, in percentages per annum.

² New business covers financial contracts that specify for the first time the interest rate on a loan or the deposit rate, and contracts for existing loans or deposits, which were renegotiated. New business does not cover revolving loans and overdrafts, as well as credit card debt. New business deposits do not cover automatic renegotiations of existing deposit contracts.

³ Comparison of data of June and September 2024.

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Statistics, Monetary and financial statistics