2009-04-29
At the end of March 2009, M3 broad monetary aggregate decreased as a result of transactions by LTL 884.8 million to LTL 42.1 billion. Over the month, M2 intermediate monetary aggregate declined as a result of transactions by LTL 845.0 million to LTL 41.5 billion at the end of March, and M1 monetary aggregate went down as a result of transactions by LTL 545.5 million to LTL 21.2 billion. In March, a year-on-year decline in all monetary aggregates as a result of transactions looked like follows: 4.1% for M3, 3.2% for M2, and 17.9% for M1.
As a result of the March decline in cash in circulation due to transactions, deposits with agreed maturity of up to 2 years and debt securities with maturity of up to 2 years pushed M3 down respectively by LTL 546.9 million, LTL 306.3 million and LTL 46.5 million.
In March, MFIs’ external assets grew as a result of transactions by LTL 1.1 billion and at the end of the month it was negative, standing at LTL 14.4 billion. An increase in net external assets was driven both by a hike in net external assets of the Bank of Lithuania and net external assets of other MFIs.
Domestic credit declined as a result of transactions by LTL 1.2 billion. At the end of March, the annual growth rate of domestic credit was 10.0%. The major reason behind the contraction of domestic credit was a decrease in other MFIs’ loans to financial intermediaries, non-financial corporations and households respectively by LTL 991.0 million, LTL 274.8 million and LTL 159.8 million. Since mid?2006, annual growth rates of loans to non-financial corporations and households have been gradually decreasing. At the end of March 2009, they made up respectively 7.3% and 12.8%. Over the month, for the first time in the last five-year period lending for house purchase went down as a result of transactions by LTL 23.8 million, with the annual growth rate of it decelerating further to 17.4% at the end of March (it was 52.7% in March 2008). Consumer loans and other lending to households shrank over the month as a result of transactions by LTL 87.0 million and LTL 49.0 million, respectively.
Over the month, central government deposits hiked as a result of transactions by LTL 1.2 billion, while longer-term financial liabilities of MFIs declined by LTL 59.3 million. In March, these liabilities contracted due to a decrease of LTL 127.4 million in debt securities with maturity of over 2 years and a decrease of LTL 13.2 million in deposits with agreed maturity of over 2 years. Capital and reserves however hiked by LTL 81.4 million.