The Bank of Lithuania published on August 27 the monetary financial institution (MFI) balance sheet and interest rate data for July 2020, which show that deposits of Lithuanian residents with credit institutions rose by €404.7mn over the month (€4.9bn, y/y, to €27.6bn at the end of the month).

Over the month, non-financial corporation and household deposits increased by €287.9 mm and €222.9mn respectively, while general government and financial sector deposits reduced by €104.5mn and €1.5mn respectively.

 Deposits from these sectors at the end of the month amounted to €7.7bn, €16.1bn, €3.1bn and €722.1mn respectively.

Loans granted by credit institutions to Lithuanian residents decreased by €41.3mn over the month, while over the last five months – by €545.4mn (to €19.9bn at the end of the month).

Meanwhile, loans to Lithuanian non-financial corporations and the general government sector fell by €101.4mn and €0.8mn respectively, while loans to households and the financial sector increased by €59.9mn and €1.0mn respectively.

 At the end of the month, loans to these sectors amounted to €7.8bn, €331.3mn, €10.8bn and €1.0bn respectively.

Loans for house purchase and other purposes granted by credit institutions to Lithuanian households grew by €56.1mn and €4.5mn respectively, while loans for consumption decreased by €0.8mn – to €8.8bn, €1.2bn and €742.7mn respectively.

Interest rates on new business loans granted to households by credit institutions fell by 0.10 of a percentage point over the month (to 3.76%).

 Interest rates on loans for consumption and house purchase declined by 0.04 pp and 0.01 pp respectively, while interest rates on loans for other purposes increased by 0.78 pp. In July 2020, interest rates on these loans stood at 8.89%, 2.40% and 5.52% respectively.