OREANDA-NEWS. April 28, 2008. At the end of March 2008, M3 broad monetary aggregate amounted to LTL 43,7 billion, a month-on-month increase of LTL 255,1 million, as a result of transactions, reported the press-centre of Bank of Lithuania.

The annual rate of growth of M3 was 17,3%. M2 intermediate monetary aggregate, which accounts for the largest part of M3, grew by LTL 23,0 million over the month, as a result of transactions, to reach LTL 42,7 billion at the end of the month. At the end of March, the annual growth rate of M2 was 16,4%. Over the same month, M1 narrow monetary aggregate widened by LTL 54,0 million to form LTL 25,6 billion at the end of March, having increased by 2,7% over the past twelve-month period.

In March, the increase of M3 as a result of transactions was mainly driven by an increase of LTL 314,3 million in debt securities with maturity of up to 2 years, a hike of LTL 67,2 million in overnight deposits, and a rise of LTL 61,2 million in deposits redeemable at a period of notice of up to 3 months.

At the same time, a decrease of LTL 92,2 million deposits with agreed maturity of up to 2 years, the fall of LTL 82,2 million of repo deals and a drop of LTL 13,2 million in currency in circulation pushed M3 down.

In March, net external assets of MFIs went down by LTL 438,6 million, as a result of transactions, while domestic credit soared by LTL 1,0 billion. At the end of the month, the amount of net external assets was negative (-) at LTL 6,5 billion. In March net external assets of the Bank of Lithuania as a result of transactions decreased by LTL 194,3 million, and of other MFIs - by LTL 244,3 million. At the end of the month, domestic credit went up as a result of transactions by 35,1% year on year.

The increase in domestic credit in March was driven by a rise of MFI loans to other residents as a result of transactions, which made up LTL 1,0 billion. At the end of March, the annual growth rate of these loans was 39,2%. Loans of other MFIs to non-financial corporations grew by LTL 516,2 million; at the end of March, their annual growth rate was 34,5%. Over the month, lending to households as a result of transactions went up by LTL 499,8 million, an increase of 49,7% year on year.

Over the month, lending for house purchase as a result of transactions grew by LTL 360,4 million; their annual growth rate was 52,7% at the end of March. Consumer loans went up by LTL 84,3 million over the month, while other loans increased by LTL 55,1 million.

Over the month, central government deposits went up as a result of transactions by LTL 329,7 million, but year on year, they decreased by 3,3%. At the same time longer-term financial liabilities of MFIs decreased as a result of transactions by LTL 77,3 million with their annual growth rate reaching 39,5% at the end of March.

In March, these liabilities contracted because of a decrease of LTL 76,1 million in capital and reserves, a LTL 2,3 million drop in securities with maturity over 2 years. Meanwhile, deposits with agreed maturity of over 2 years went up by LTL 1,1 million.