OREANDA-NEWS. September 29, 2008. In August 2008, M3 broad monetary aggregate increased as a result of transactions by LTL 432.5 million to LTL 46.4 billion at the end of the month. At the end of the month, the annual rate of growth of M3 was 14.3%, reported the press-centre of Bank of Lithuania.

During the month, M2 intermediate monetary aggregate as a result of transactions grew by LTL 172.4 million to LTL 44.7 billion at the end of August. At the end of the month, the annual rate of growth of M2 was 11.7%. Over the same month, M1 narrow monetary aggregate contracted by LTL 510.2 million to LTL 26.0 billion at the end of August, a decrease of 2.2% over the past twelve-month period.

The change in M3, that took place in August due to transactions resulted from an increase of LTL 675.8 million in deposits with agreed maturity of up to 2 years, a growth of LTL 165.6 million in repo deals, an increase of LTL 120.4 million in currency in circulation, a hike of LTL 94.5 million in debt securities with maturity of up to 2 years and a slump of LTL 630.6 million in overnight deposits.

In August, net external assets of MFIs as a result of transactions went up by LTL 489.4 million. At the end of the month, it was negative standing at LTL 9.9 billion. In August, the growth of net external assets was recorded both at the Bank of Lithuania and other MFIs.

In August, domestic credit as a result of transactions soared by LTL 884.2 million, an annual growth of 27.4%. Loans granted by other MFIs to non-financial corporations expanded by LTL 746.6 million; their annual growth rate reached 30.1% at the end of August.

Over the month, lending to households went up as a result of transactions by LTL 458.5 million; their annual growth rate made up 31.9% per cent at the end of August. In August, lending for house purchase went up as a result of transactions by LTL 352.9 million with their annual growth rate reaching 35.6% at the end of the month. Consumer loans went up by LTL 71.5 million over the month, while other loans increased by LTL 34.1 million.

During the month, central government deposits declined as a result of transactions by LTL 313.9 million and longer-term financial liabilities of MFIs increased due to transactions by LTL 371.9 million. In August, the growth of these liabilities was driven by an increase of LTL 323.9 million in capital and reserves, a hike of LTL 33.4 million in deposits with agreed maturity of over 2 years, and a rise of LTL 14.6 million in debt securities with maturity of over 2 years.