OREANDA-NEWS. November 29, 2007. At the end of October 2007, M3 broad monetary aggregate amounted to LTL 41,1 billion, a month-on-month increase of LTL 196,5 million (LTL 242,6 million, as a result of transactions), reported the press-centre of Bank of Lithuania.

The annual growth rate of M3 made up 25,3 percent at the end of October. M2 intermediate monetary aggregate, which accounts for the largest part of M3, grew by LTL 84,9 million over the month (LTL 125,3 million, as a result of transactions) to reach LTL 40,3 billion at the end of October. At the end of October, the annual growth rate of M2 was 24,4 percent. Over the same month, M1 narrow monetary aggregate decreased by LTL 257,1 million (LTL 239,1 million, as a result of transactions) to make up LTL 26,2 billion at the end of the month, having increased by 16.8 percent over the past twelve month.

In October, the increase in M3 broad monetary aggregate was due to the fact that deposits with an agreed maturity of up to 2 years grew by LTL 377,3 million, repo transactions increased by LTL 74,5 million, and debt securities with a maturity of up to 2 years went up by LTL 42,8 million. However, M3 went down because of a decline in overnight deposits by LTL 141,3 million, a decrease in currency in circulation by LTL 97,9 million, and a drop-down of deposits with a notice period of up to 3 months by LTL 12,9 million.

In October, the net external assets of MFIs went up by LTL 889,8 million, as a result of transactions, while domestic credit soared by LTL 2,0 billion litas. At the end of the month, the amount of net external assets was negative and amounted to LTL 2,3 billion. In October, the net external assets of the Bank of Lithuania as a result of transactions rose by LTL 3,3 billion, while the net external assets of other MFIs went down by LTL 2,4 billion. At the end of the month, domestic credit increased by 43,9 percent, as a result of transactions.

The increase in domestic credit in October was driven by a rise of LTL 2,1 billion, as a result of transactions, in the MFI loans to other residents. The annual growth rate of these loans was 45,7 per cent at the end of October. The loans of other MFIs to non-financial corporations expanded by LTL 1,1 billion, and their annual growth rate was 35,8 per cent at the end of October. Over the month, lending to households went up as a result of transactions by LTL 903,4 million, and their annual growth rate was 62,5 per cent at the end October. Over the month, housing loans as a result of transactions increased by LTL 655,4 million with their annual growth rate reaching 66,5 per cent at the end of October. Over the same month, consumer and other loans grew by LTL 90,8 million and LTL 157,1 million, respectively.

Central government deposits went up as a result of transactions by LTL 2,6 billion over the month, an increase of 177,6 per cent year-on-year. Over the month, the longer-term financial liabilities of MFIs increased by LTL 229,7 million, as a result of transactions, and their annual growth rate accounted for 42,3 percent at the end of October. In October, these liabilities grew due to a rise of LTL 144,5 million in debt securities with a maturity of over 2 years and an increase of LTL 87,5 million in capital and reserves. However, deposits with an agreed maturity of over 2 years dropped by LTL 2,4 million.