2007-04-26
In March, broad monetary aggregate M3 increased by 26.2 percent.
At the end of March 2007, broad monetary aggregate M3 equalled to LTL 37.5 billion, a month-on-month increase of LTL 1.5 billion (LTL 1.6 billion as a result of transactions). At the end of the month, the annual growth rate of M3 made up 26.2 percent. During the period, an intermediate monetary aggregate M2, which comprises the largest portion of M3, went up by LTL 1.3 billion (by LTL 1.4 million as a result of transactions) to form LTL 36.9 billion at the end of March. The annual growth rate of M2 at the end of March made up 27.5 percent. During the same month, the narrow monetary aggregate M1 widened by LTL 898.2 billion (by LTL 907.7 million as a result of transactions) to LTL 25.1 billion at the end of March, having increased by 27.6 percent over the past twelve months.
In March, an increase in M3, as a result of transactions, was mainly driven by a rise of LTL 677.4 million in overnight deposits, an increase of LTL 446.0 million in time deposits with agreed maturity up to 2 years, a hike of LTL 230.3 million in currency in circulation, an increase of LTL 208.4 million in debt securities up to 2 years, a surge of LTL 6.2 million in repo deals, and a rise of LTL 1.9 million in deposits redeemable at notice up to 3 months.
In March, as a result of transactions, net external assets of MFIs decreased by LTL 666.0 million, while domestic credit went up by LTL 1.7 billion. Over the last 12 months, the development trends for these two indicators varied. Year-on-year, net external assets declined by 68.6 percent, while domestic credit grew up by 36.6 percent. In March, the net external assets of other MFIs and the Bank of Lithuania contracted respectively by LTL 212.1 million and LTL 454.0 million.
In March, the growth of domestic credit was driven by an increase of LTL 1.5 billion as a result of transactions in MFIs’ loans to other residents. At the end of March, the annual growth rate of this category of loans constituted 38.3 percent. Meanwhile, the loans of other MFIs to non-financial corporations increased as a result of transactions by LTL 578.3 million over this month, while their annual growth rate constituted 37.3 percent at the end of the month. The loans to households grew as a result of transactions by LTL 740.2 million over the month, a year-on-year growth of 65.8 percent. Lending for house purchase went up as a result of transactions by LTL 527.9 million, while consumer credits and other loans rose respectively by LTL 93.2 and 119.0 million. The annual growth rate of lending for house purchase was 61.7 percent at the end of March.
After the restoration by the government of depreciated rouble deposits of the country residents, the central government deposits went down by LTL 800.0 million due to transactions over one month, and at the end of March, their year-on-year growth was 56.1 per cent. As a result of transactions longer-term financial liabilities of MFIs increased by LTL 223.1 million during the month and their annual growth rate was equal to 35.6 per cent at the end of the month. In March, this group of liabilities hiked due to an increase of LTL 156.8 million, as a result of transactions, in capital and reserves, a growth of LTL 61.2 million in debt securities over 2 years, and a rise of LTL 5.1 million in deposits with agreed maturity of over 2 years.