OREANDA-NEWS. February 03, 2009. In December 2008, M3 broad monetary aggregate increased as a result of transactions by LTL 510.1 million to LTL 44.1 billion at the end of the month. Over the month, M2 intermediate monetary aggregate grew by LTL 633.7 million as a result of transactions and amounted to LTL 43.3 billion at the end of December, reported the press-centre of Bank of Lithuania.

Over the month, M1 narrow monetary aggregate contracted by LTL 681.6 million due to transactions and made up LTL 23.3 million at the end of the month. However, at the end of the year, both monetary aggregates M3 and M2 decreased by 0.3 % over the year due to transactions and M1 narrow monetary aggregate contracted by 16.6 %, whereas grow rates of M3 and M2 were still positive in the previous month.

Since the terms for saving were starting to improve rapidly at the end of the year, flows of funds were getting more advantageous for time deposits and deposits redeemable at notice, therefore structure of M3 broad monetary aggregate changed. Deposits with agreed maturity of up to 2 years and deposits redeemable at a period of notice of up to 3 months grew by LTL 1.3 billion and LTL 37.1 million respectively. Overnight deposits and currency in circulation, having declined as a result of transactions, dampened the increase in M3 broad monetary aggregate by LTL 581.8 million and LTL 99.8 million respectively.

In December, net external assets of MFIs went down by LTL 30.0 million due to transactions. At the end of the month, the amount of net external assets was negative at LTL 15.6 billion. The decline in net external assets was caused by a decrease in net external assets of other MFIs.

Domestic credit contracted by LTL 96.5 million as a result of transactions and its annual growth rate was 17.2 % at the end of December. The main factors behind the contraction of domestic credit in December was the decrease in loans to non-financial corporations, consumer loans and other loans to households granted by other MFIs by LTL 173.2 million, LTL 72.7 million and LTL 65.3 million respectively.

Annual growth rates of loans to non-financial corporations and households were decreasing gradually and amounted to 15.7 % and 20.3 % respectively at the end of December. Over the month, lending for house purchase grew by LTL 148.5 million due to transactions while their annual growth rate slowed down to 24.7 % at the end of December (cf. 61.9 % in December 2007). Number of loan transactions remains on a declining trend.

Over the month, central government deposits declined by LTL 225.8 million as a result of transactions and longer-term financial liabilities of IMFs increased by LTL 38.4 million. The increase in those liabilities in December was caused by the increase in capital and reserves by LTL 250.2 million. Debt securities with a maturity of over 2 years, however, decreased by LTL 179.8 million and deposits with agreed maturity of over 2 years contracted by LTL 32.0 million.