Summary
• In March, monetary aggregates continued to moderate their pace of expansion. In particular, the broadest aggregate in pesos (M3) presented a year-on-year variation of 22.3%, which was 1.8 p.p. lower than that observed in February. The average monthly balance of M3 decreased by 0.4%, with a fall in deposits belonging to the public sector and an increase in the broader private monetary aggregate (private M3).
• Within the components of the private M3, the means of payment registered a decrease that was more than offset by the increase in fixed-term placements. Favored by higher yields, this type of taxation continued to grow strongly in March (4.4%), presenting one of the highest increases in the last twelve months. Distinguishing by strata of amount, progress was made in both placements belonging to the wholesale segment (4.7%) and those of less than $1 million (4.1%). In this way, fixed-term deposits from the private sector once again accelerated their year-on-year rate of change, which stood at 34.5%.
• In March, the liquidity of financial institutions in the segment in local currency (sum of cash, current account at the Central Bank, net passes with such entity and the holding of LEBAC and NOBAC) showed an increase again, which on average represented 1.1% of total deposits in pesos, and was mainly applied to the increase in the balances of securities issued by the Central Bank. As a result, the average liquidity ratio for the month was 33.6%.
• The average monthly balance of loans in pesos to the private sector remained practically stable in March, accumulating a growth of 32% in the last twelve months. Among the different lines of credit, financing granted through advances stood out, which continued to grow at a good pace, registering an increase of 2.8% monthly. For its part, the Central Bank continued to boost credit to the productive sector. In March, a new
tender was held within the framework of the Bicentennial Productive Financing Program (PFPB), aimed at increasing the supply of long-term funds for productive investment with a total financial cost fixed in pesos. On this occasion, $100 million was awarded. Thus, the total resources awarded since the beginning of the PFPB amounts to $7,880 million, of which $6,205 million have been disbursed.
• Within the Credit Line for Productive Investment, the Central Bank’s provision came into force that allows financial institutions to apply up to 10% of the line’s quota for the first half of 2014 to the discount of deferred payment checks for MSMEs in March and April (Communication “A” 5554). This was reflected in a decrease in interest rates on some lines of financing aimed at the productive sector. In fact, the interest rate
applied to the discount on documents averaged 29.3%, decreasing 2.6 p.p. compared to February.
