OREANDA-NEWS. January 29, 2007. At the end of December, 2007, M3 broad monetary aggregate amounted to LTL 44,2 billion, a month-on-month increase of LTL 2,4 billion, as a result of transactions, reported the press-centre of Bank of Lithuania.

The annual growth rate of M3 made up 22,3%. M2 intermediate monetary aggregate, which accounts for the largest part of M3, grew by LTL 2,5 billion over the month, as a result of transactions, to reach LTL 43,5 billion at the end of the month. At the end of December, the annual growth rate of M2 was 22,0%. Over the same month, the narrow monetary aggregate M1 widened by LTL 1,6 billion to make up LTL 27,9 billion at the end of December, having increased by 12,8% over the past twelve-month period.

In December, the increase in M3 broad money aggregate due to transactions resulted from overnight deposits growth of LTL 1,5 billion, an increase LTL 881,0 million in deposits with agreed maturity of up to 2 years, and a hike in currency in circulation of LTL 139,5 million. At the same time, a decline of LTL 43,9 million in debt securities with a maturity of up to 2 years, a drop of LTL 19,9 million in repo transactions and a decrease of LTL 14,5 million in deposits with a notice period of up to 3 months pushed M3 down.

In December, the net external assets of MFIs went down by LTL 689,8 million, as a result of transactions, while domestic credit soared by LTL 1,4 billion litas. At the end of the month, the amount of net external assets was negative and amounted to LTL 3,9 billion. Over the same month, the net external assets of the Bank of Lithuania narrowed by LTL 1,0 billion as a result of transactions, while the net external assets of other MFIs went up by LTL 324,1 million. At the end of the month, the annual increase of domestic credit as a result of transactions made up 40,9%.

In December, the increase in domestic credit was driven by a rise of LTL 1,4 billion of MFI loans to other residents as a result of transactions. The annual growth rate of these loans was 43,5% at the end of the month. Loans of other MFIs to non-financial corporations went up by LTL 877.6 million with their annual growth rate of 37,0% at the end of December. Over the month, lending to households increased as a result of transactions by LTL 609,3 million with their annual growth rate reaching 58,5% at the end December. Over the month, housing loans grew by LTL 402,2 million as a result of transactions, and their annual growth rate made up 61,9% at the end of December. Over the month, consumer and other loans went up by LTL 81,4 million and LTL 125,6 million, respectively.

Central government deposits went down as a result of transactions by LTL 2,3 billion over the month, representing an annual decrease of 10,8% at the end of December. The longer-term financial liabilities of MFIs due to transactions increased by LTL 276,4 million, and their annual growth rate accounted for 47,0% at the end of December. In December, these liabilities grew due to a rise of LTL 222,8 million in capital and reserves, and an increase of LTL 79,2 million in debt securities with a maturity of over 2 years. However, deposits with an agreed maturity of over 2 years dropped by LTL 25,6 million.