OREANDA-NEWS. August 06, 2008. At the end of June 2008, M3 broad monetary aggregate amounted to LTL 45.0 billion, a month-on-month decrease of LTL 53.1 million, as a result of transactions, reported the Official website www.lb.lt.

The annual rate of growth of M3 made up 15.1% at the end of June. M2, which accounts for the largest part of M3, grew by LTL 5.5 million over the month, as a result of transactions, to reach LTL 43.8 billion at the end of June. At the end of June, the annual growth rate of M2 was 13.3%. Over the month, as a result of transactions, M1 widened by LTL 146.0 million to form LTL 26.2 billion at the end of June, having increased by 0.4% over the year.

In June, the increase of M3 as a result of transactions was mainly driven by an increase of LTL 79.2 million in overnight deposits, an increase of LTL 66.8 million in currency in circulation, a hike of LTL 31.9 million in deposits redeemable at a period of notice of up to 3 months and an increase of LTL 21.8 million in debt securities with maturity of up to 2 years. Meanwhile, M3 was pushed down by a decrease of LTL 172.4 million in deposits with agreed maturity up to 2 years and a decrease of LTL 80.4 million in repos.

In June, the net external assets of MFIs contracted by LTL 1.2 billion, as a result of transactions, while domestic credit soared by LTL 1.8 million. At the end of the month, the amount of net external assets was negative at LTL 9.9 billion. In June, the net external assets of the Bank of Lithuania as a result of transactions rose by LTL 572.1 million, while the net external assets of other MFIs decreased by LTL 1.8 billion. At the end of the month, domestic credit increased by 32.4%, as a result of transactions.

In June, 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 35.5% at the end of June. Loans of other MFIs to non-financial corporations went up by LTL 472.0 million with their annual growth rate of 32.6% at the end of June.

Over the month, loans to households increased by LTL 600.9 million as a result of transactions, an increase of 39.9% year-on-year. Over the month, lending for house purchase as a result of transactions grew by LTL 437.7 million; their annual growth rate was 59.1% at the end of June. Consumer loans went up by LTL 84.5 million over the month, while other loans increased by LTL 78.6 million.

Over the month, central government deposits went up as a result of transactions by LTL 541.7 million, an increase of 12.8 year-on-year. Over the month, the longer-term financial liabilities of MFIs increased by LTL 94.8 million, as a result of transactions, and their annual growth rate accounted for 21.6% at the end of June.

In June, these liabilities widened because of an increase of LTL 56.5 million in capital and reserves, and an increase of LTL 47.2 million in debt securities with a maturity of over 2 years. Meanwhile, deposits with agreed maturity of over 2 years went down by LTL 8.9 million.