2007-06-28
At the end of May 2007, broad monetary aggregate M3 amounted to LTL 38.7 billion, a month-on-month increase by LTL 975.0 million (LTL 952.4 million as a result of transactions). The annual growth rate of M3 at the end of May made up 24.7 per cent. An intermediate monetary aggregate M2, which accounts for the largest part of M3, grew by LTL 930.6 million over the month (LTL 908.1 million as a result of transactions) and to reach LTL 38.2 billion at the end of May. The annual growth rate of M2 was 26.2 per cent at the end of May. Over the same month, the narrow monetary aggregate M1 widened by LTL 679.4 million (LTL 670.8 million as a result of transactions) to LTL 25.8 billion at the end of May, having increased by 23.9 per cent over the past twelve months.
In May, an increase of M3 as a result of transactions was mainly driven by a rise of LTL 639.0 million in overnight deposits, an increase of LTL 212.8 million in deposits with agreed maturity up to 2 years, a hike of LTL 31.8.0 million in currency in circulation, a growth of LTL 24.8 million of repurchase transactions, a rise of LTL 24.4 million in deposits redeemable at notice up to 3 months, and an increase of LTL 19.4 million in debt securities with maturity up to 2 years.
In May, net external assets of MFIs went down as a result of transactions by LTL 449.5 million, while domestic credit soared by LTL 1.6 billion. Over the last 12 months, the development trends for these two indicators varied. Net external assets of MFIs declined from LTL 1.4 billion and became negative (minus) LTL 419.4 million at the end of May. By contrast, domestic credit climbed by 32.9 per cent year-on-year. In May, net external assets of the Bank of Lithuania diminished by LTL 1.2 billion, while those of other MFIs rose LTL 727.2 million.
In May, the growth of domestic credit was driven by a rise of LTL 1.3 billion in MFIs loans to other residents as a result of transactions. At the end of May, the annual growth rate of these loans made up 35.3 per cent. Loans of other MFIs to non-financial corporations went up by LTL 459.5 million with their annual growth rate reaching 34.2 per cent at the end of May. Loans to households climbed by LTL 943.9 million as a result of transactions over the month, while their year-on-year growth amounted to 65.5 per cent. Over the month, lending for house purchase went up as a result of transactions by LTL 627.7 million, and their annual growth rate made up 64.3 per cent at the end of May. Over the month, consumer and other loans augmented by LTL 134.4 million and LTL 181.8 million, respectively.
Over one month, the central government deposits contracted as a result of transactions by LTL 805.8 million. However, at the end of May the annual growth rate of this indicator was 31.2 per cent. Month-on-month, longer-term financial liabilities of MFIs grew by LTL 880.9 million as a result of transactions, while their annual growth rate was 41.5 per cent at the end of May. In May, these liabilities grew mainly due to an increase of LTL 609.6 in debt securities over 2 years, as a result of transactions, and a rise of LTL 281.4 million in capital and reserves. However, deposits with an agreed maturity over 2 years contracted by LTL 10.2 million.