OREANDA-NEWS. May 29, 2008. At the end of April 2008, M3 broad monetary aggregate amounted to LTL 44.7 billion, a month-on-month increase of LTL 995.7 million, as a result of transactions. The annual growth rate of M3 was 19.1%. M2 intermediate monetary aggregate, which accounts for the largest part of M3, grew by LTL 911.3 million over the month, as a result of transactions, to reach LTL 43.6 billion at the end of April, a year-on-year growth of 17.5%. Over the same month, M1 narrow monetary aggregate widened by LTL 472.7 million to form LTL 26.1 billion at the end of April, having increased by 4.3% over the past twelve-month period, reported the press-centre of Bank of Lithuania.

In April, the increase of M3 as a result of transactions was mainly driven by an increase of LTL 476.1 million in deposits with agreed maturity of up to 2 years, a rise of LTL 366.2 million in overnight deposits, a growth of LTL 106.5 million in currency in circulation, and a hike of LTL 71.5 million and LTL 12.9 million in debt securities with maturity of up to 2 years and repo deals, respectively. At the same time, M3 was pushed down by a decrease of LTL 37.5 million in deposits redeemable at a period of notice of up to 3 months.

In April, net external assets of MFIs went down by LTL 1.2 billion, as a result of transactions, while domestic credit soared by LTL 1.9 billion. At the end of the month, the amount of net external assets was negative at LTL 7.7 billion. In April net external assets of the Bank of Lithuania as a result of transactions increased by LTL 573.7 million, while net external assets of other MFIs went down by LTL 1.7 billion. At the end of the month, annual growth of domestic credit as a result of transactions was 36.1%.

The increase in domestic credit in April was driven by a rise of LTL 1.9 billion in MFI loans to other residents as a result of transactions. The annual growth rate of these loans was 39.5% at the end of April. Loans of other MFIs to non-financial corporations grew by LTL 1.4 billion, a year-on-year growth of 36.9% at the end of April. Over the month, lending to households as a result of transactions went up by LTL 642.9 million, an increase of 47.1% year on year. Over the month, lending for house purchase as a result of transactions grew by LTL 470.4 million; their annual growth rate was 50.1% at the end of April. Consumer loans went up by LTL 143.7 million over the month, while other loans increased by LTL 28.8 million.

Over the month, central government deposits went down as a result of transactions by LTL 141.9 million, an annual decrease of 1.9% at the end of April. At the same time longer-term financial liabilities of MFIs increased as a result of transactions by LTL 144.1 million, with their annual growth rate reaching 39.8% at the end of April. In April, the growth of these liabilities was driven by a rise of LTL 171.9 million in capital and reserves. Meanwhile, debt securities with maturity of over 2 years and deposits with agreed maturity of over 2 years went down respectively by LTL 21.4 million and LTL 6.4 million.