2008-12-30
In November 2008, M3 broad monetary aggregate decreased as a result of transactions by LTL 118.9 million to LTL 43.7 billion at the end of the month. The annual growth rate of M3 was 4.2% at the end of November. M2 intermediate monetary aggregate, which accounts for the largest part of M3, grew as a result of transactions by LTL 15.5 million to reach LTL 42.8 billion at the end of the month. At the end of November, the annual growth rate of M2 equalled to 4.1%. Over the same month, M1 narrow monetary aggregate contracted due to transactions by LTL 403.6 million to LTL 24.1 billion at the end of November, having decreased by 8.9% over the past twelve-month period.
The decrease of M3 due to transactions happened because of a decrease in overnight deposits, repo deals, debt securities with maturity of up to 2 years, deposits redeemable at a period of notice of up to 3 months, and currency in circulation respectively by LTL 402.7 million, LTL 75.4 million, LTL 59.0 million, LTL 15.2 million, and LTL 0.9 million. At the same time, the decline of M3 was partly offset by the LTL 434.3 million growth as a result of transactions in deposits with agreed maturity of up to 2 years.
In November, net external assets of MFIs went down due to transactions by LTL 1.6 billion. At the end of the month, the amount of net external assets was negative at LTL 15.6 billion. The decline of net external assets of MFIs was determined by a decrease in net external assets of the Bank of Lithuania.
In November, domestic credit grew as a result of transactions by LTL 897.9 million, while the annual growth rate made up 19.9%. Other MFIs’ loans to non-financial corporations increased by LTL 286.5 million, an increase of 19.7% year on year. Over the month, lending to households went up as a result of transactions by LTL 87.4 million, an increase of 23.3% in the last 12 months. Meanwhile, lending for house purchase grew as a result of transactions by LTL 171.3 million; at the end of November their annual growth rate was 26.8%. Consumer loans went down by LTL 56.8 million over the month, while other loans fell by LTL 27.1 million.
During the month, the decrease in central government deposits as a result of transactions made up LTL 663.0 million, and longer-term financial liabilities of MFIs went down by LTL 51.0 million. In November, these liabilities declined due to the LTL 27.6 million slump in debt securities with maturity of over 2 years, the LTL 14.3 million fall of deposits with agreed maturity of over 2 years, and the LTL 9.1 million decline in capital and reserves.