2007-03-27
In February, broad monetary aggregate M3 increased by 23.2 percent.
At the end of February 2007, broad monetary aggregate M3 equalled to LTL 36.0 billion, a month-on-month increase of LTL 635.9 million (or LTL 673.2 million as a result of transactions). At the end of the month, the annual growth rate of M3 made up 23.2 percent. During the period, an intermediate monetary aggregate M2, which comprises the largest portion of M3, went up by LTL 678.4 million (by LTL 714.3 million as a result of transactions) to form LTL 35.6 billion at the end of the month. The annual growth rate of M2 at the end of February made up 24.5 percent. During the same month, the narrow monetary aggregate M1 widened by LTL 387.3 billion (by LTL 401.7 as a result of transactions) to LTL 24.2 billion, having increased by 23.1 percent over the past twelve months.
In February, an increase in M3, as a result of transactions, was mainly driven by a rise in deposits with agreed maturity up to 2 years by LTL 313.9 million and a hike in overnight deposits, in currency in circulation and repo deals respectively by LTL 281.0 million and LTL 120.7 million and LTL 11.2 million. However, a slump of LTL 52.3 million in debt securities up to 2 years and a drop of LTL 1.3 million in deposits redeemable at notice up to 3 month halted the further growth of M3.
In February, as a result of transactions, net external assets of MFIs decreased by LTL 861.2 million, while domestic credit went up by LTL 1.4 billion. Over the last 12 months, the development trends for these two indicators varied. Year-on-year, net external assets declined by 58.2 percent, while domestic credit grew up by 35.8 percent. In February, the net external assets of other MFIs and the Bank of Lithuania contracted respectively by LTL 611.3 million and LTL 249.8 million.
In February, the growth of domestic credit was driven by an increase of LTL 1.2 billion as a result of transactions in MFIs’ loans to other residents. At the end of February, the annual growth rate of this category of loans constituted 39.1 percent. Meanwhile, the loans of other MFIs to non-financial corporations increased as a result of transactions by LTL 548.4 million over this month, while their annual growth rate constituted 38.6 percent at the end of the month. The loans to households grew as a result of transactions by LTL 546.0 million over the month, a year-on-year growth of 67.0 percent. Lending for house purchase went up as a result of transactions by LTL 379.7 million, while consumer credits and other loans rose respectively by LTL 57.3 and 109.0 million. The annual growth rate of lending for house purchase was 61.4 percent at the end of February.
Although the central government deposits contracted by LTL 236.6 million due to transactions over one month, at the end of February, their year-on-year growth was 52.3 per cent. As a result of transactions, longer-term financial liabilities of MFIs increased by LTL 218.2 million during the month and their annual growth rate was equal to 31.8 per cent at the end of the month. In February, this group of liabilities hiked due to an LTL 133.9 million increase as a result of transactions in debt securities with maturity over 2 years, an LTL 78.9 million rise in capital and reserves, and an LTL 5.5 million hike in deposits with agreed maturity of over 2 years.