OREANDA-NEWS. August 29, 2008. At the end of July 2008, M3 broad monetary aggregate amounted to LTL 45.9 billion, a month-on-month increase of LTL 851.4 million, as a result of transactions, reported the press-centre of Bank of Lithuania. 

The annual rate of growth of M3 was 15.4%. M2 intermediate monetary aggregate, which accounts for the largest part of M3, grew by LTL 655.7 million over the month, as a result of transactions, to reach LTL 44.4 billion at the end of the month. At the end of July, the annual growth rate of M2 was 13.4%.  Over the same month, M1 narrow monetary aggregate went up by LTL 258.5 million to form LTL 26.5 billion at the end of July, unchanged over the past twelve-month period.

In July, the increase of M3 as a result of transactions was mainly driven by an increase of LTL 390.9 million in deposits with agreed maturity of up to 2 years, a hike of LTL 220.8 million in overnight deposits, a growth of LTL 193.3 million in debt securities with maturity of up to 2 years, a surge in currency in circulation of LTL 37.8 million, a hike of LTL 6.3 million in deposits redeemable at a period of notice of up to 3 months, and an increase of LTL 2.3 million in repo deals.

In July, net external assets of MFIs went down as a result of transactions by LTL 595.1 million, while domestic credit soared by LTL 1.1 billion. At the end of the month, the amount of net external assets was negative at LTL 10.5 billion. In July net external assets of the Bank of Lithuania decreased as a result of transactions by LTL 460.0 million, and of other MFIs - by LTL 135.1 million. At the end of the month, domestic credit went up as a result of transactions by 29.6% year on year.

The increase in domestic credit in July was driven by a rise of LTL 1.2 billion, as a result of transactions, in the MFI loans to other residents. The annual growth rate of these loans was 32.7% at the end of July. Loans of other MFIs to non-financial corporations expanded by LTL 612.8 million; at the end of July, their annual growth rate was 31.1%.

Over the month, lending to households as a result of transactions went up by LTL 572.4 million, an increase of 35.9% year on year. Over the month, lending for house purchase as a result of transactions grew by LTL 432.1 million; their annual growth rate made up 39.4% at the end of July. Over one month, consumer loans went up by LTL 79.2 million, while other loans grew by LTL 61.1 million. 

Over the month, central government deposits as a result of transaction went down by LTL 512.4 million, an annual decrease of 7.1% at the end of July. Over the same, period longer-term financial liabilities of MFIs increased as a result of transactions by LTL 127.2 million with their annual growth rate reaching 22.2% at the end of July.

In July, the growth of these liabilities was supported by a rise of LTL 196.1 million in capital and reserves. At the same time, debt securities with maturity of over 2 years and deposits with agreed maturity of over 2 years decreased respectively by LTL 61.2 million and LTL 7.7 million.