2007-09-27
At the end of August 2007, broad monetary aggregate M3 amounted to LTL 40.8 billion, a month-on-month increase by LTL 749.5 million (LTL 754.7 million as a result of transactions). The annual growth rate of M3 was 21.8 per cent at the end of August. An intermediate monetary aggregate M2, which accounts for the largest part of M3, grew by LTL 746.5 million over the month (LTL 753.7 million as a result of transactions) and to reach LTL 40.2 billion at the end of August. The annual growth rate of M2 was 23.3 per cent at the end of the month. Over the same month, the narrow monetary aggregate M1 widened by LTL 96.5 million (LTL 99.1 million as a result of transactions) to make up LTL 26.6 billion at the end of August, having increased by 18.5 per cent over the past twelve month.
In August, the increase of M3 as a result of transactions was mainly driven by an increase of LTL 633.2 million in deposits with agreed maturity of up to 2 years, a hike of LTL 68.3 million in currency in circulation, a rise of LTL 30.8 million in overnight deposits, an increase of 21.4 million in deposits redeemable at a period of notice of up to 3 months, and a hike of LTL 9.0 million in debt securities with maturity of up to 2 years. At the same time, repurchase agreements pushed M3 down by LTL 8.0 million.
In August, net external assets of MFIs contracted by LTL 961.7 million as a result of transactions, while domestic credit expanded by LTL 1.7 billion. The annual growth rates of these indicators were different at the end of the last twelve-month period. Net external assets shrank by 160.6 per cent and domestic credit grew by 43.9 per cent over one year. In August, net external assets of the Bank of Lithuania expanded by LTL 379.2 million, while net external assets of other MFIs contracted by LTL 1.3 billion.
In August, the growth of domestic credit was driven by a rise of LTL 1.8 billion in MFIs loans to other residents as a result of transactions. The annual growth rate of these loans was 46.1 per cent at the end of August. Loans of other MFIs to non-financial corporations expanded by LTL 777.8 million, and their annual growth rate was 35.5 per cent at the end of August. Over the month, lending for house purchase went up as a result of transactions by LTL 996.1 million, and their annual growth rate made up 65.2 per cent at the end of August. In August, housing loans as a result of transactions augmented by LTL 645.2 million, and their annual growth rate reached 66.7 per cent at the end of the month. Over the same month, consumer and other loans grew by LTL 126.7 million and LTL 224.2 million, respectively.
Central government deposits went up as a result of transactions by LTL 22.2 million over the month, an increase of 81.4 per cent year-on-year. Over the month, longer-term financial liabilities of MFIs increased by LTL 420.7 million as a result of transactions, and their annual growth rate accounted for 43.4 per cent at the end of August. In August, these liabilities grew as a result of transactions mainly due to a rise of LTL 304.6 million in capital and reserves, and debt securities over 2 years increased by LTL 116.0 million. However, deposits with an agreed maturity of over 2 years contracted by LTL 0.1 million.