2007-03-05
At the end of January 2007, broad monetary aggregate M3 equalled to LTL 35.3 billion, a month-on-month decrease of LTL 1.0 billion (or LTL 1.0 billion as a result of transactions). At the end of the month, the annual growth rate of M3 made up 21.3 percent. During the period, an intermediate money aggregate M2 that comprises the largest portion of M3 went down by LTL 906.7 million (by LTL 931.3 million as a result of transactions) to form LTL 34.9 billion at the end of the month. The annual growth rate of M2 at the end of January made up 21.1 percent. During the same month, the narrow monetary aggregate M1 contracted by LTL 1.0 billion (a LTL 1.0 billion drop as a result of transactions) to LTL 23.8 billion, having increased by 19.2 percent over the past twelve months.
In January, a slump in M3, as a result of transactions, was mainly driven by a drop in overnight deposits and in currency in circulation respectively by LTL 866.8 million and LTL 192.9 million, as well as a decrease in debt securities up to 2 years and deposits redeemable at notice up to 3 month respectively by LTL 109.2 million and LTL 2.7 million. At the same time, M3 went up as a result of a rise in deposits with agreed maturity up to 2 years by LTL 131.1 million and an LTL 4.1 million increase in repo deals.
In January, as a result of transactions, net external assets of MFIs dropped by LTL 719.2 million, while domestic credit went up by LTL 696.7 million. Over the last 12 months, the development trends for these two indicators varied. Year-on-year, net external assets declined by 14.6 percent, while domestic credit grew up 34.5 percent. In January, a slump in the net external assets was the result of a decrease in the net assets of other MFIs by LTL 1.1 billion.
In January, the growth of domestic credit was driven by an increase of LTL 777.2 million as a result of transactions in MFIs’ loans to other residents. At the end of January, the annual growth rate of this category of loans constituted 39.7 percent. The loans of other MFIs to non-financial corporations increased as a result of transactions by LTL 373.9 million over this month, while their annual growth rate constituted 40.9 percent at the end of January. The loans to households increased due to transactions by LTL 551.5 million over the month, a year-on-year growth of 67.6 percent as a result of transactions at the end of this month. Lending for house purchase grew by LTL 390.9 million and consumer credit and other loans rose respectively by LTL 85.3 and 75.3 million. The annual growth rate of lending for house purchase was 62.1 percent at the end of January.
The central government deposits surged by LTL 678.6 million due to transactions over December, a growth of 94.6 per cent year on year. As a result of transactions, longer-term financial liabilities of MFIs increased by LTL 101.0 million during the month, while their annual growth rate was equal to 32.4 per cent at the end of the month. In January, the longer-term financial liabilities of MFIs hiked as a result of a LTL 109.6 million rise in capital and reserves. A decrease in the liabilities however was driven by a drop of LTL 4.8 million in deposits with agreed maturity of over 2 years and a slump of LTL 3.8 million in debt securities with maturity over 2 years.