OREANDA-NEWS. March 05, 2008. At the end of January, 2008, M3 broad monetary aggregate amounted to LTL 43,2 billion, a month-on-month decrease of LTL 1,0 billion, as a result of transactions, reported the press-centre of Bank of Lithuania.

The annual rate of growth of M3 made up 23,1%. M2 intermediate monetary aggregate, which accounts for the largest part of M3, went down by LTL 895,7 million over January, as a result of transactions, to reach LTL 42,6 billion at the end of the month. At the end of January, the annual growth rate of M2 was 22,7%.

Over the same month, the narrow monetary aggregate M1 narrowed by LTL 2,0 billion to form LTL 26,0 billion at the end of January, having increased by 9,6% over the past twelve-month period.

In January, the decrease of M3 as a result of transactions was mainly driven by a decrease of LTL 1,7 billion in overnight deposits, a slump of LTL 301,7 million in currency in circulation, a drop of LTL 175.3 million in debt securities with a maturity of up to 2 years, and a decrease of LTL 3,8 million in deposits redeemable at a period of notice of up to 3 months. Meanwhile, a hike of LTL 1,1 billion in deposits with agreed maturity of 2 years and an increase of LTL 59,5 million in repo deals pushed M3 up.

In January, the net external assets of MFIs went down by LTL 1,2 billion, as a result of transactions, while domestic credit soared by LTL 664,5 million litas. At the end of the month, the amount of net external assets was negative and amounted to LTL 4,9 billion. In January, net external assets of the Bank of Lithuania and other MFIs, as a result of transactions, decreased by LTL 562,5 million and LTL 646,2 million, respectively. At the end of the month, the annual increase of domestic credit stood at 40,2%, as a result of transactions.

In January, as a result of transactions the increase of domestic credit was driven by a rise of LTL 865,9 million in MFI’s loans to other residents. The annual growth rate of these loans was 42,9% at the end of January. Loans of other MFIs to non-financial corporations expanded by LTL 352,2 million, and their annual growth rate was 36,3% at the end of January.

Over the month, lending to households went up as a result of transactions by LTL 417,0 million, and their annual growth rate was 55,8% at the end January. Over the month, lending for house purchase grew by LTL 332,4 million as a result of transactions, and their annual growth rate made up 59,1% at the end of January. Over the month, consumer and other loans went up by LTL 68,8 million and LTL 15,8 million, respectively.

Central government deposits went up as a result of transactions by LTL 565,6 million over the month, representing an annual decrease of 11,7% at the end of January. Over the month, longer-term financial liabilities of MFIs increased by LTL 132,9 million, as a result of transactions, and their annual growth rate accounted for 46,5% at the end of January.

In January, the growth of these liabilities was driven by a LTL 124,9 million rise in capital and reserves, LTL 7,2 million increase in deposits with agreed maturity of over 2 years, and a LTL 0,7 million increase in debt securities with a maturity of over 2 years.