Banks, Financial Services, Investments, Lithuania

It built up due to an outflow of net direct and other investment. In January-April 2014, the net investment outflow (LTL 1.1 billion or 0.32 billion) resulted from strong growth in other investment foreign assets.

Foreign investment outflows from Lithuania amounted to LTL 855.6 million (EUR 248 million) in April 2014 (in March there were LTL 372.7 million (EUR 108 million) in inflows); they were driven by a decline in monetary financial institutions' other investment liabilities and negative non-resident reinvestment. In January-April, investment inflows (LTL 921.3 million or EUR 267 million) were recorded. They resulted from an increase in general government portfolio investment liabilities to non-residents. In January-April 2013, investment outflows (LTL 1.5 billion or EUR 0.4 billion) built up.

In April 2014, the positive flow of Lithuania's investment abroad (LTL 496.2 million or EUR 144 million) suggested a decline in it, while the major contribution to its formation stemmed from a decline in investment in nonresident debt securities and in the other investment foreign assets of other sectors. In January-April2014 Lithuania's investment abroad boosted by LTL 2.5 billion (EUR 0.7 billion) year on year.

The net negative foreign direct investment (FDI) flow amounted to LTL 203.2 million (EUR 59 million) in April and LTL 246.3 million (EUR 71.4 million) in January-April 2014. In April 2013, a net FDI outflow (LTL 192.2 million or EUR 56 million) and in January-April 2013 – net inflows (LTL 551.7 million or EUR 160 million) were recorded.

In April 2014, the negative FDI flow to Lithuania amounted to LTL 264.3 million (EUR 77 million) and suggested investment outflows, while in January-April FDI inflows into Lithuania (LTL 12.1 million or EUR 4 million) were recorded. The investment outflows in April were due to the build-up of negative reinvestment because of announced dividends, while the inflows in January-April – stronger growth in reinvestment and an increase in share capital. In April 2013, investment outflows (LTL 323.4 million or EUR 94 million) were driven by a decline in other sectors' reinvestment, while in January-April the FDI inflows into Lithuania (LTL 382.9 million or EUR 111 million) were due to growth in other capital and reinvestment.

In April 2014, domestic economic agents' direct investment abroad contracted (LTL 61.1 million or EUR 18 million), while in January-April the negative flow (LTL 258.4 million or EUR 75 million) suggested growth in this investment abroad. The direct investment flows in the reference periods were affected by the FDI flows of other capital abroad. In April and January-April 2013 investment abroad posted a decline, which amounted to LTL 131.3 million (EUR 38 million) and LTL 168.8 million (EUR 49 million) respectively.