The Bank of Lithuania published the balance of services and payments for May 2022, which shows that:
- Although compared with April, the deficit on the current account balance (CAB) shrank significantly (4.5 times), the CAB remained in deficit and amounted to €104.6 million. In May, the overall decrease in the deficit on the CAB was triggered by a dramatic plunge in the deficit on foreign trade (from €736.8 million to €445.5 million) and the increasing surplus on the balance of services (from €390.6 million to €452.0 million). The surplus on the balance of services increased by 15.7%, to stand at €452.0 million.
- The secondary income balance was in surplus, amounting to €26.1 million. Transfers from European Union (EU) support funds (€53.7 million) rose by 59.2%, whereas Lithuania’s calculated contributions to the EU budget remained unchanged and amounted to €42.6 million. Personal transfers from abroad amounted to €51.8 million, a month-on-month decrease of 4.1%.
- The positive net flow of financial account investment (€34.6 million) was determined by the increase in the positive flow of portfolio investment.
At the same time, the Bank of Lithuania published the monetary financial institution (MFI) balance sheet and interest rate data for June 2022, which show that:
- Loans granted by credit institutions to Lithuanian residents increased by €218.1 million, or 0.9%, over the month (their annual growth rate stood at 16.2%). Loans to Lithuanian households increased by €141.4 million, or 1.1%, month on month, and those to non-financial corporations by €0.2 million (their annual growth rate stood at 11.8% and 18.1% respectively). Loans to the financial sector4 grew by €78.7 million, while those to the general government contracted by €2.2 million.
- Loans to Lithuanian households for house purchases, consumption, and other purposes granted by credit institutions increased.
- Deposits of Lithuanian residents with credit institutions rose by €23.3 million, or 0.1%, over the month (their annual growth rate was 3.1%). Household deposits grew by €156.7 million, or 0.8%, and their annual growth rate was positive (5.1%). Non-financial corporation deposits contracted by €123.0 million, or 1.4%, and their annual growth rate was negative (-5.7%).
- Overnight deposits of Lithuanian households with credit institutions increased by €159.5 million, while those of non-financial corporations diminished by €172.8 million month on month, to €16.5 billion and €8.6 billion respectively.
