OREANDA-NEWS. June 27, 2008. At the end of May 2008, M3 broad monetary aggregate amounted to LTL 45,1 billion, a month-on-month increase of LTL 425,0 million, as a result of transactions, and a year-on- year increase of 17,3%, reported the Official website www.lb.lt.

M2 intermediate monetary aggregate, which accounts for the largest part of M3, grew by LTL 196,9 million over the month, as a result of transactions, to reach LTL 43,8 billion at the end of the month. At the end of May, the annual growth rate of M2 was 15,2%.

Over the same month, M1 narrow monetary aggregate contracted by LTL 29,3 million to form LTL 26,1 billion at the end of May, having increased by 1,5% over the past twelve-month period.

In May, the increase of M3 as a result of transactions was mainly driven by an increase of LTL 217,2 million in deposits with agreed maturity of up to 2 years, a growth of LTL 151,6 million in currency in circulation, a hike of LTL 120,0 million and LTL 108,1 million in debt securities with maturity of up to 2 years and repo deals, as well as a rise of LTL 9,0 million in deposits redeemable at a period of notice of up to 3 months.

At the same time, M3 was pushed down by a decrease of LTL 180,9 million in overnight deposits.

In May, net external assets of MFIs went down by LTL 862,8 million, as a result of transactions, while domestic credit soared by LTL 671,1 million. At the end of the month, the amount of net external assets was negative (-) at LTL 8,6 billion.

In May net external assets of the Bank of Lithuania as a result of transactions decreased by LTL 1,1 billion, while net external assets of other MFIs went up by LTL 226,1 million. At the end of the month, annual growth rate of domestic credit as a result of transactions was 33,1%.

The increase in domestic credit in May, as a result of transactions, was driven by a rise of LTL 575,8 million in MFI loans to other residents. The annual growth rate of these loans was 36,9% at the end of May. Loans of other MFIs to non-financial corporations contracted by LTL 111,3 million; at the end of May, their annual growth rate was 33,9%.

Over the month, lending to households as a result of transactions went up by LTL 604,4 million, an increase of 43,0% year on year. Over the month, lending for house purchase as a result of transactions grew by LTL 419,2 million; their annual growth rate was 46,0% at the end of May. Consumer loans went up by LTL 125,7 million over the month, while other loans increased by LTL 59,5 million.

Over the month, central government deposits went down as a result of transactions by LTL 698,1 million, but year on year, they increased by 1,3%. At the same time longer-term financial liabilities of MFIs increased as a result of transactions by LTL 143,8 million, with their annual growth rate reaching 27,4% at the end of May. In May, these liabilities widened because of an increase of LTL 142,7 million in capital and reserves and a rise of LTL 1,8 million in securities with maturity over 2 years. Meanwhile, deposits with agreed maturity of over 2 years went down by LTL 0,7 million.