OREANDA-NEWS. December 02, 2008. In October 2008, M3 broad monetary aggregate decreased by LTL 1.5 billion to LTL 43.8 billion. At the end of October, the annual growth rate of M3 made up 6.2%, reported the press-centre of Bank of Lithuania.

Over the month, M2 intermediate monetary aggregate went down as a result of transactions by LTL 1.5 billion to LTL 42.8 billion. The annual growth rate of M2 was 5.8% at the end of October. Over the same month, M1 narrow monetary aggregate contracted by LTL 1.2 billion to form LTL 24.4 billion at the end of October, having decreased by 7.0% over the past twelve-month period.

In October, the decrease of M3 as a result of transactions was driven mainly by a decrease in deposits: overnight deposits went down by LTL 1.7 billion, deposits with agreed maturity of up to 2 years declined by LTL 222.4 million, and deposits redeemable at a period of notice of up to 3 months shrank by LTL 69.5 million. On the other hand, the M3 decline was offset just to a negligible extent by currency in circulation which increased by LTL 447.3 million.

In October, the net external assets of MFIs as a result of transactions contracted by LTL 2.7 billion. At the end of the month their amount was negative (-) at LTL 14.2 billion. The decline resulted from a decrease in net external assets of other MFIs.

In October, domestic credit as a result of transactions soared by LTL 563.1 million, an annual growth of 21.6%. The loans of other MFIs to non-financial corporations grew by LTL 221.2 million with their annual growth rate reaching 22.4% at the end of October.

Over the month, lending to households went up as a result of transactions by LTL 272.6 million, an increase of 26.1% over the last twelve-month period. Over the month, housing loans as a result of transactions grew by LTL 314.2 million with their annual growth rate reaching 29.3% at the end of October. Consumer loans went up by LTL 11.6 million, while other loans declined by LTL 53.2 million over the month.

During the month, central government deposits declined as a result of transactions by LTL 516.6 million and longer-term financial liabilities of MFIs went down by LTL 5.7 million. In October, these liabilities decreased due to a slump of LTL 54.3 million in debt securities with a maturity of over 2 years and a drop of LTL 18.2 million in deposits with agreed maturity of over 2 years. An increase in capital and reserves however drove these liabilities up by LTL 66.7 million.