OREANDA-NEWS. March 31, 2008. At the end of February 2008, M3 broad monetary aggregate amounted to LTL 43,5 billion, a month-on-month increase of LTL 349,1 million, as a result of transactions, reported the press-centre of Bank of Lithuania.

The annual rate of growth of M3 was 21,7%. M2 intermediate monetary aggregate, which accounts for the largest part of M3, grew by LTL 216,6 million over the month, as a result of transactions, to reach LTL 42,7 billion at the end of the month. At the end of February, the annual growth rate of M2 was 20,8%. Over the same month, M1 narrow monetary aggregate contracted by LTL 351,5 million to form LTL 25,6 billion at the end of February, having increased by 6,3% over the past twelve-month period.

In February, the increase of M3 as a result of transactions was mainly driven by an increase of LTL 516,4 million in deposits with agreed maturity of up to 2 years, a hike of LTL 216,5 million in debt securities with maturity of up to 2 years, a growth of LTL 51,7 million in deposits redeemable at a period of notice of up to 3 months. At the same time, a decrease of LTL 327,8 million in overnight deposits as a result of transactions, a contraction of LTL 83,9 million of repo deals and a drop of LTL 23,6 million in currency in circulation pushed M3 down.

In February, net external assets of MFIs went down by LTL 1,0 billion, as a result of transactions, while domestic credit soared by LTL 759,9 million. At the end of the month, the amount of net external assets was negative at LTL 5,9 billion. In February net external assets of the Bank of Lithuania as a result of transactions decreased by LTL 896,9 million, and of other MFIs contracted by LTL 114,7 million. At the end of the month, domestic credit went up as a result of transactions by 37,7% year on year.

The increase in domestic credit in February 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 41,7% at the end of February. Loans of other MFIs to non-financial corporations expanded by LTL 569,8 million; at the end of February, their annual growth rate was 35,6%. Over the month, lending to households as a result of transactions went up by LTL 425,8 million, an increase of 53,3% year on year. Over the month, lending for house purchase as a result of transactions grew by LTL 339.1 million; their annual growth rate made up 56,7% at the end of February. Consumer credit went up by LTL 91,9 million over the month, while other lending declined by LTL 5,2 million.

Over the month, central government deposits went down as a result of transactions by LTL 924,0 million, an annual decrease of 27,1% at the end of February. At the same time longer-term financial liabilities of MFIs increased as a result of transactions by LTL 155,3 million, with their annual growth rate reaching 44,3% at the end of February. In February, the growth of these liabilities was driven by a rise of LTL 179,8 million in capital and reserves, LTL 7,7 million increase in deposits with agreed maturity of over 2 years. Meanwhile, debt securities with maturity of over 2 years went down by LTL 32,1 million.