OREANDA-NEWS. October 29, 2007. At the end of September 2007, M3 broad monetary aggregate amounted to LTL 40,9 billion, a month-on-month increase of LTL 174,9 million (LTL 220,7 million as a result of transactions), reported the press-centre of Bank of Lithuania.

The annual growth rate of M3 was 23,2 percent at the end of September. M2 intermediate monetary aggregate, which accounts for the largest part of M3, grew by LTL 104,1 million over the month (LTL 149,6 million as a result of transactions) to reach LTL 40,3 billion at the end of September. At the end of the month, the annual growth rate of M2 was 24,0 percent.  Over the same month, M1 narrow monetary aggregate decreased by LTL 177,0 million (LTL 164,0 million as a result of transactions) to make up LTL 26,5 billion at the end of September, having increased by 18,3 percent over the past twelve month.

In September, the increase of M3 as a result of transactions was mainly driven by an increase of LTL 306.1 million in deposits with agreed maturity of up to 2 years, a hike of LTL 106,2 million in currency in circulation, a rise of LTL 66,5 million in repo deals, a growth of LTL 7,5 million in deposits redeemable at a period of notice of up to 3 months, and a hike of LTL 4,7 million in debt securities with maturity of up to 2 years. At the same time, a decrease in overnight deposits as a result of transactions pushed M3 down by LTL 270,2 million.

In September,  as a result of transactions the net external assets of MFIs went down by LTL 175,2 million, while domestic credit grew by LTL 1,7 billion. During the year, net external assets decreased from LTL 1,9 billion to -3,3 billion litas, while domestic credit grew by 43,2 percent. In September,  Net external assets of the Bank of Lithuania shrank by LTL 319,4 million, while net external assets of other MFIs went up by LTL 144,2 million.

The September increase of domestic credit was driven by a LTL 1,6 billion rise of MFIs loans to other residents as a result of transactions. The annual growth rate of these loans was 45,6 percent at the end of September.  Loans of other MFIs to non-financial corporations grew by LTL 744,4 million, and their annual growth rate was 34,9 percent at the end of September. Over the month, lending for house purchase as a result of transactions went up by LTL 738,1 million, and their annual growth rate made up 63,3 percent at the end of the month. In September, housing loans augmented by LTL 578,7 million as a result of transactions with their annual growth rate reaching 66,1 percent at the end of the month.  Over the same month, consumer and other loans grew by LTL 83,9 million and LTL 75,5 million, respectively. 

Central government deposits went up as a result of transactions by LTL 407,7 million over the month, an increase of 54,5 percent year on year. Over the month, longer-term financial liabilities of MFIs increased by LTL 163,9 million as a result of transactions, and their annual growth rate accounted for 42,3 percent at the end of September. In September, these liabilities grew mainly due to a rise of LTL 134,8 million in capital and reserves, an increase of LTL 14,8 million in debt securities over 2 years, and a hike of LTL 14,4 million in deposits with an agreed maturity of over 2 years.