OREANDA-NEWS. August 28, 2007. At the end of July 2007, broad monetary aggregate M3 amounted to LTL 40,0 billion, reported the press-centre of Bank of Lithuania.

Over a month, this indicator increased by LTL 602,9 million (LTL 642,7 million as a result of transactions). The annual growth rate of M3 at the end of July made up 23,0 per cent. An intermediate monetary aggregate M2, which accounts for the largest part of M3, grew by LTL 482,8 million over a month (LTL 522,3 million as a result of transactions) to make up LTL 39,4 billion at the end of July. The annual growth rate of M2 was 23,8 per cent at the end of July. The narrow monetary aggregate M1 increased by LTL 334,0 million (LTL 352,0 million as a result of transactions) over a month to LTL 26,6 billion at the end of July, increasing by 21,6 per cent over a year.

The M3 increase in July due to transactions resulted from overnight deposit growth of LTL 232,6 million, an increase of deposits with agreed maturity of up to 2 years of LTL 183,6 million an increase of currency in circulation of LTL 119,4 million, an increase of debt securities with maturity of up to 2 years of LTL 101,1 million and the growth of repurchase transactions of LTL 19,3 million. Meanwhile, the decline of deposits redeemable at notice of up to 3 months due to transactions reduced M3 by LTL 13,3 million.

Net external assets of MFIs went down because of transactions by LTL 1,3 billion in July, while domestic credit grew by LTL 2,0 billion. The development of these indicators over 12 months was orientated into opposite directions. Net external assets of MFIs shrank by 135,4 per cent and domestic credit grew by 43,0 per cent over one year. In July, net external assets of the Bank of Lithuania expanded by LTL 229,9 million, while those of other MFIs contracted by LTL 1,6 billion.

The July increase of domestic credit was driven by a LTL 1,9 billion rise of MFIs loans to other residents as a result of transactions. The annual growth rate of these loans was 45,5 per cent at the end of July. Loans of other MFIs to non-financial corporations expanded by LTL 756,8 million, and their annual growth rate was 34,6 per cent at the end of July. Over a month, loans to households increased by LTL 1,0 billion as a result of transactions, and their year-on-year growth amounted to 64,9 per cent at the end of July. Over a month, housing loans went up as a result of transactions by LTL 655,8 million, and their annual growth rate made up 65,9 per cent the end of July. Over a month, consumer and other loans went up by LTL 97,2 million and LTL 256,7 million, respectively.

Central government deposits went up as a result of transactions by LTL 97,9 million over one month, increasing year-on-year by 42,1 per cent at the end of July. Over a month, longer-term financial liabilities of MFIs grew by LTL 31,3 million as a result of transactions, and their annual growth rate was 39,5 per cent at the end of July. The growth of these liabilities in July was determined by the increase in capital and reserves due to transactions of LTL 133,6 million. However, they were reduced by the decline of debt securities with maturity of over 2 years of LTL 101,0 million and the contraction of deposits with an agreed maturity of over 2 years of LTL 1,3 million.