Suchergebnisse

The paper attempts to reconstruct the picture of the state savings bank system and its structure in Lithuanian governorates in the beginning of the 20th century. The same economic, political, social contradictions as in the whole credit system of the lagging behind Russian Empire as compared with Western European states were typical in the creation and activity of savings banks. Among other means (accumulation of land in the hands of Russians, colonial policy of taxes and customs), discriminative credit policies were used. The formation of credit resources using savings of the occupied countries also served for the imperial purposes of Russia. The opening and activities of savings banks were regulated by special statutes in which the objective of savings banks was indicated: to provide the possibility for poor people to accumulate funds in small amounts and get interest for them. However, the operations of savings banks were trivial, they managed to accumulate only very small amounts of money. In 1895, the new Statute of savings banks was approved and they were called State Savings Banks. The State Bank of Russia headed over the savings banks. According to the new Statute, the order of the opening of savings banks was easier. It became possible to open state savings banks and their branches in all cities and settlements - at the State Bank, treasuries, customs, at all governmental and public offices, private offices and enterprises. The spread of the network of savings banks became easier, deposits grew up. Deposits in saving banks in the period 1899-1913 increased rather rapidly: in the Vilnius governorate 2.9, in Kaunas 2.6, and in Suvalkai 3.1 times. The number of savings banks in Lithuanian governorates in this period increased 1.45 times. At the beginning of 1913, in Lithuanian governorates operated 29 central savings banks and one city branch, 241 savings banks at post offices, 11 at railway stations, and 2 saving banks in factories. The number of all V types of savings banks was biggest in Siauliai district (22), Vilnius and Raseiniai districts (21 in each), and the smallest in Naumiestis district (4). The biggest amount of deposits in total, its average per one savings bank, and the average amount of passbooks per one saving bank was in the Vilnius governorate and the smallest in the Suvalkai governorate. The average biggest amount of passbooks in savings banks per one thousand inhabitants was in the Vilnius governorate and the smallest in the Suvalkai governorate, too. Savings banks' deposit funds were invested in state bonds. Formation of the credit resources of the Russian Empire using savings of people of the occupied countries was one of the means of the realization of Russia's colonial policy. The Lithuanian deposit funds brought away from Lithuania have never been returned.

The paper attempts to reconstruct the picture of the state savings bank system and its structure in Lithuanian governorates in the beginning of the 20th century. The same economic, political, social contradictions as in the whole credit system of the lagging behind Russian Empire as compared with Western European states were typical in the creation and activity of savings banks. Among other means (accumulation of land in the hands of Russians, colonial policy of taxes and customs), discriminative credit policies were used. The formation of credit resources using savings of the occupied countries also served for the imperial purposes of Russia. The opening and activities of savings banks were regulated by special statutes in which the objective of savings banks was indicated: to provide the possibility for poor people to accumulate funds in small amounts and get interest for them. However, the operations of savings banks were trivial, they managed to accumulate only very small amounts of money. In 1895, the new Statute of savings banks was approved and they were called State Savings Banks. The State Bank of Russia headed over the savings banks. According to the new Statute, the order of the opening of savings banks was easier. It became possible to open state savings banks and their branches in all cities and settlements - at the State Bank, treasuries, customs, at all governmental and public offices, private offices and enterprises. The spread of the network of savings banks became easier, deposits grew up. Deposits in saving banks in the period 1899-1913 increased rather rapidly: in the Vilnius governorate 2.9, in Kaunas 2.6, and in Suvalkai 3.1 times. The number of savings banks in Lithuanian governorates in this period increased 1.45 times. At the beginning of 1913, in Lithuanian governorates operated 29 central savings banks and one city branch, 241 savings banks at post offices, 11 at railway stations, and 2 saving banks in factories. The number of all V types of savings banks was biggest in Siauliai district (22), Vilnius and Raseiniai districts (21 in each), and the smallest in Naumiestis district (4). The biggest amount of deposits in total, its average per one savings bank, and the average amount of passbooks per one saving bank was in the Vilnius governorate and the smallest in the Suvalkai governorate. The average biggest amount of passbooks in savings banks per one thousand inhabitants was in the Vilnius governorate and the smallest in the Suvalkai governorate, too. Savings banks' deposit funds were invested in state bonds. Formation of the credit resources of the Russian Empire using savings of people of the occupied countries was one of the means of the realization of Russia's colonial policy. The Lithuanian deposit funds brought away from Lithuania have never been returned.

The paper attempts to reconstruct the picture of the state savings bank system and its structure in Lithuanian governorates in the beginning of the 20th century. The same economic, political, social contradictions as in the whole credit system of the lagging behind Russian Empire as compared with Western European states were typical in the creation and activity of savings banks. Among other means (accumulation of land in the hands of Russians, colonial policy of taxes and customs), discriminative credit policies were used. The formation of credit resources using savings of the occupied countries also served for the imperial purposes of Russia. The opening and activities of savings banks were regulated by special statutes in which the objective of savings banks was indicated: to provide the possibility for poor people to accumulate funds in small amounts and get interest for them. However, the operations of savings banks were trivial, they managed to accumulate only very small amounts of money. In 1895, the new Statute of savings banks was approved and they were called State Savings Banks. The State Bank of Russia headed over the savings banks. According to the new Statute, the order of the opening of savings banks was easier. It became possible to open state savings banks and their branches in all cities and settlements - at the State Bank, treasuries, customs, at all governmental and public offices, private offices and enterprises. The spread of the network of savings banks became easier, deposits grew up. Deposits in saving banks in the period 1899-1913 increased rather rapidly: in the Vilnius governorate 2.9, in Kaunas 2.6, and in Suvalkai 3.1 times. The number of savings banks in Lithuanian governorates in this period increased 1.45 times. At the beginning of 1913, in Lithuanian governorates operated 29 central savings banks and one city branch, 241 savings banks at post offices, 11 at railway stations, and 2 saving banks in factories. The number of all V types of savings banks was biggest in Siauliai district (22), Vilnius and Raseiniai districts (21 in each), and the smallest in Naumiestis district (4). The biggest amount of deposits in total, its average per one savings bank, and the average amount of passbooks per one saving bank was in the Vilnius governorate and the smallest in the Suvalkai governorate. The average biggest amount of passbooks in savings banks per one thousand inhabitants was in the Vilnius governorate and the smallest in the Suvalkai governorate, too. Savings banks' deposit funds were invested in state bonds. Formation of the credit resources of the Russian Empire using savings of people of the occupied countries was one of the means of the realization of Russia's colonial policy. The Lithuanian deposit funds brought away from Lithuania have never been returned.

The paper attempts to reconstruct the picture of the state savings bank system and its structure in Lithuanian governorates in the beginning of the 20th century. The same economic, political, social contradictions as in the whole credit system of the lagging behind Russian Empire as compared with Western European states were typical in the creation and activity of savings banks. Among other means (accumulation of land in the hands of Russians, colonial policy of taxes and customs), discriminative credit policies were used. The formation of credit resources using savings of the occupied countries also served for the imperial purposes of Russia. The opening and activities of savings banks were regulated by special statutes in which the objective of savings banks was indicated: to provide the possibility for poor people to accumulate funds in small amounts and get interest for them. However, the operations of savings banks were trivial, they managed to accumulate only very small amounts of money. In 1895, the new Statute of savings banks was approved and they were called State Savings Banks. The State Bank of Russia headed over the savings banks. According to the new Statute, the order of the opening of savings banks was easier. It became possible to open state savings banks and their branches in all cities and settlements - at the State Bank, treasuries, customs, at all governmental and public offices, private offices and enterprises. The spread of the network of savings banks became easier, deposits grew up. Deposits in saving banks in the period 1899-1913 increased rather rapidly: in the Vilnius governorate 2.9, in Kaunas 2.6, and in Suvalkai 3.1 times. The number of savings banks in Lithuanian governorates in this period increased 1.45 times. At the beginning of 1913, in Lithuanian governorates operated 29 central savings banks and one city branch, 241 savings banks at post offices, 11 at railway stations, and 2 saving banks in factories. The number of all V types of savings banks was biggest in Siauliai district (22), Vilnius and Raseiniai districts (21 in each), and the smallest in Naumiestis district (4). The biggest amount of deposits in total, its average per one savings bank, and the average amount of passbooks per one saving bank was in the Vilnius governorate and the smallest in the Suvalkai governorate. The average biggest amount of passbooks in savings banks per one thousand inhabitants was in the Vilnius governorate and the smallest in the Suvalkai governorate, too. Savings banks' deposit funds were invested in state bonds. Formation of the credit resources of the Russian Empire using savings of people of the occupied countries was one of the means of the realization of Russia's colonial policy. The Lithuanian deposit funds brought away from Lithuania have never been returned.

The idea of the restitution of the Lithuanian national monetary system for the first time was discussed openly on May 26, 1988 at the meeting of scientists at the Institute of Economics of the Academy of Sciences, where professor Stasys Uosis for the first time openly expressed the idea of the restitution of the Lithuanian national monetary system. Some scientists, among them the nomenclature of soviet banks, spoke, against the idea of litas. In spring 1989, the group of the creation of independent Lithuanian monetary and credit system was organized, in which lecturers of Vilnius University Finance and Credit Department and bankers-practitioners took part. In half a year the conception of independent Lithuanian monetary and credit system and the projects of related laws were prepared. When on March 11, 1990 the Independence was restored, the ossibilities to create the real, functioning central bank and national currency appeared. But the newly re-established the Bank of Lithuania had neither premises nor resources. It had only several workers, the Board hadn't been organized. When Vilius Baldišis was appointed Chairman of the Board of the Bank of Lithuania and the Statute of the Bank of Lithuania was approved, the main tasks in the monetary sphere were formulated, the concrete work began. On November 5, 1991 the Supreme Council adopted the publishing of Money Law. The Committee of Litas was founded. Its task was to fix the litas emission date. At the beginning of 1992 it was already prepared to introduce litas, but because of the inflation politics of the Government of that time the infroduct of litas became impossible - litas would quickly devaluate, the mere idea of litas as the national currency symbol would be discredited. The prices jumped up sharply, the lack of goods grew. The Government changed the order of selling the deficit goods by coupons (product cards). On July 29, 1991 the new common coupons were introduced. They were not money, but only universal trade cards. This change of the trade order did not diminish the problems. In this situation, the Bank of Lithuania suggested not to put coupons in circulation and only in case of necessity to use them as temporary money, but the government did not pay attention to this suggestion. The shortage of rouble cash began, the salaries, pensions, various payments and grants were not paid in time. Rouble signs were printed and emitted in Russia. For the political and economical reasons there was no possibility to expect the accession of cash from the USSR State Bank, so the Bank of Lithuania was looking for possibilities to emit the substitutes of rouble. On May 1, 1992 new coupons as the substitutes of rouble were put in circulation. With their help the bigger part of the arrears was liquidated. At the same time trade by common coupons (universal trade cards) was stopped. Life changed the plans of the creation of national monetary system. It was decided to introduce temporary money. When the Government changed, the Committee of Litas on September 16, 1992 adopted the decision that from October 1, 1992 only temporary money-coupons would be circulating in the territory of the Republic of Lithuania. Roubles were changed into coupons in the ratio 1:1. This way on October 1, 1992 the national currency was introduced and the own monetary system re-established in Lithuania. The Bank of Lithuania acquired the possibility to fulfil the main function of the Central Bank - to regulate the turnover of money, to apoly instruments of monetary policy. The growth of the amount of money and inflation process slowed down, and from December I, 1992 the exchange rate of coupon against rouble became stronger. The variation of the exchange rate of coupon towards convertible currencies became smaller, though their exchange rates towards our money grew. The state had a possibility to prepare for changing temporary money-coupons into litas.

The idea of the restitution of the Lithuanian national monetary system for the first time was discussed openly on May 26, 1988 at the meeting of scientists at the Institute of Economics of the Academy of Sciences, where professor Stasys Uosis for the first time openly expressed the idea of the restitution of the Lithuanian national monetary system. Some scientists, among them the nomenclature of soviet banks, spoke, against the idea of litas. In spring 1989, the group of the creation of independent Lithuanian monetary and credit system was organized, in which lecturers of Vilnius University Finance and Credit Department and bankers-practitioners took part. In half a year the conception of independent Lithuanian monetary and credit system and the projects of related laws were prepared. When on March 11, 1990 the Independence was restored, the ossibilities to create the real, functioning central bank and national currency appeared. But the newly re-established the Bank of Lithuania had neither premises nor resources. It had only several workers, the Board hadn't been organized. When Vilius Baldišis was appointed Chairman of the Board of the Bank of Lithuania and the Statute of the Bank of Lithuania was approved, the main tasks in the monetary sphere were formulated, the concrete work began. On November 5, 1991 the Supreme Council adopted the publishing of Money Law. The Committee of Litas was founded. Its task was to fix the litas emission date. At the beginning of 1992 it was already prepared to introduce litas, but because of the inflation politics of the Government of that time the infroduct of litas became impossible - litas would quickly devaluate, the mere idea of litas as the national currency symbol would be discredited. The prices jumped up sharply, the lack of goods grew. The Government changed the order of selling the deficit goods by coupons (product cards). On July 29, 1991 the new common coupons were introduced. They were not money, but only universal trade cards. This change of the trade order did not diminish the problems. In this situation, the Bank of Lithuania suggested not to put coupons in circulation and only in case of necessity to use them as temporary money, but the government did not pay attention to this suggestion. The shortage of rouble cash began, the salaries, pensions, various payments and grants were not paid in time. Rouble signs were printed and emitted in Russia. For the political and economical reasons there was no possibility to expect the accession of cash from the USSR State Bank, so the Bank of Lithuania was looking for possibilities to emit the substitutes of rouble. On May 1, 1992 new coupons as the substitutes of rouble were put in circulation. With their help the bigger part of the arrears was liquidated. At the same time trade by common coupons (universal trade cards) was stopped. Life changed the plans of the creation of national monetary system. It was decided to introduce temporary money. When the Government changed, the Committee of Litas on September 16, 1992 adopted the decision that from October 1, 1992 only temporary money-coupons would be circulating in the territory of the Republic of Lithuania. Roubles were changed into coupons in the ratio 1:1. This way on October 1, 1992 the national currency was introduced and the own monetary system re-established in Lithuania. The Bank of Lithuania acquired the possibility to fulfil the main function of the Central Bank - to regulate the turnover of money, to apoly instruments of monetary policy. The growth of the amount of money and inflation process slowed down, and from December I, 1992 the exchange rate of coupon against rouble became stronger. The variation of the exchange rate of coupon towards convertible currencies became smaller, though their exchange rates towards our money grew. The state had a possibility to prepare for changing temporary money-coupons into litas.

The idea of the restitution of the Lithuanian national monetary system for the first time was discussed openly on May 26, 1988 at the meeting of scientists at the Institute of Economics of the Academy of Sciences, where professor Stasys Uosis for the first time openly expressed the idea of the restitution of the Lithuanian national monetary system. Some scientists, among them the nomenclature of soviet banks, spoke, against the idea of litas. In spring 1989, the group of the creation of independent Lithuanian monetary and credit system was organized, in which lecturers of Vilnius University Finance and Credit Department and bankers-practitioners took part. In half a year the conception of independent Lithuanian monetary and credit system and the projects of related laws were prepared. When on March 11, 1990 the Independence was restored, the ossibilities to create the real, functioning central bank and national currency appeared. But the newly re-established the Bank of Lithuania had neither premises nor resources. It had only several workers, the Board hadn't been organized. When Vilius Baldišis was appointed Chairman of the Board of the Bank of Lithuania and the Statute of the Bank of Lithuania was approved, the main tasks in the monetary sphere were formulated, the concrete work began. On November 5, 1991 the Supreme Council adopted the publishing of Money Law. The Committee of Litas was founded. Its task was to fix the litas emission date. At the beginning of 1992 it was already prepared to introduce litas, but because of the inflation politics of the Government of that time the infroduct of litas became impossible - litas would quickly devaluate, the mere idea of litas as the national currency symbol would be discredited. The prices jumped up sharply, the lack of goods grew. The Government changed the order of selling the deficit goods by coupons (product cards). On July 29, 1991 the new common coupons were introduced. They were not money, but only universal trade cards. This change of the trade order did not diminish the problems. In this situation, the Bank of Lithuania suggested not to put coupons in circulation and only in case of necessity to use them as temporary money, but the government did not pay attention to this suggestion. The shortage of rouble cash began, the salaries, pensions, various payments and grants were not paid in time. Rouble signs were printed and emitted in Russia. For the political and economical reasons there was no possibility to expect the accession of cash from the USSR State Bank, so the Bank of Lithuania was looking for possibilities to emit the substitutes of rouble. On May 1, 1992 new coupons as the substitutes of rouble were put in circulation. With their help the bigger part of the arrears was liquidated. At the same time trade by common coupons (universal trade cards) was stopped. Life changed the plans of the creation of national monetary system. It was decided to introduce temporary money. When the Government changed, the Committee of Litas on September 16, 1992 adopted the decision that from October 1, 1992 only temporary money-coupons would be circulating in the territory of the Republic of Lithuania. Roubles were changed into coupons in the ratio 1:1. This way on October 1, 1992 the national currency was introduced and the own monetary system re-established in Lithuania. The Bank of Lithuania acquired the possibility to fulfil the main function of the Central Bank - to regulate the turnover of money, to apoly instruments of monetary policy. The growth of the amount of money and inflation process slowed down, and from December I, 1992 the exchange rate of coupon against rouble became stronger. The variation of the exchange rate of coupon towards convertible currencies became smaller, though their exchange rates towards our money grew. The state had a possibility to prepare for changing temporary money-coupons into litas.

The idea of the restitution of the Lithuanian national monetary system for the first time was discussed openly on May 26, 1988 at the meeting of scientists at the Institute of Economics of the Academy of Sciences, where professor Stasys Uosis for the first time openly expressed the idea of the restitution of the Lithuanian national monetary system. Some scientists, among them the nomenclature of soviet banks, spoke, against the idea of litas. In spring 1989, the group of the creation of independent Lithuanian monetary and credit system was organized, in which lecturers of Vilnius University Finance and Credit Department and bankers-practitioners took part. In half a year the conception of independent Lithuanian monetary and credit system and the projects of related laws were prepared. When on March 11, 1990 the Independence was restored, the ossibilities to create the real, functioning central bank and national currency appeared. But the newly re-established the Bank of Lithuania had neither premises nor resources. It had only several workers, the Board hadn't been organized. When Vilius Baldišis was appointed Chairman of the Board of the Bank of Lithuania and the Statute of the Bank of Lithuania was approved, the main tasks in the monetary sphere were formulated, the concrete work began. On November 5, 1991 the Supreme Council adopted the publishing of Money Law. The Committee of Litas was founded. Its task was to fix the litas emission date. At the beginning of 1992 it was already prepared to introduce litas, but because of the inflation politics of the Government of that time the infroduct of litas became impossible - litas would quickly devaluate, the mere idea of litas as the national currency symbol would be discredited. The prices jumped up sharply, the lack of goods grew. The Government changed the order of selling the deficit goods by coupons (product cards). On July 29, 1991 the new common coupons were introduced. They were not money, but only universal trade cards. This change of the trade order did not diminish the problems. In this situation, the Bank of Lithuania suggested not to put coupons in circulation and only in case of necessity to use them as temporary money, but the government did not pay attention to this suggestion. The shortage of rouble cash began, the salaries, pensions, various payments and grants were not paid in time. Rouble signs were printed and emitted in Russia. For the political and economical reasons there was no possibility to expect the accession of cash from the USSR State Bank, so the Bank of Lithuania was looking for possibilities to emit the substitutes of rouble. On May 1, 1992 new coupons as the substitutes of rouble were put in circulation. With their help the bigger part of the arrears was liquidated. At the same time trade by common coupons (universal trade cards) was stopped. Life changed the plans of the creation of national monetary system. It was decided to introduce temporary money. When the Government changed, the Committee of Litas on September 16, 1992 adopted the decision that from October 1, 1992 only temporary money-coupons would be circulating in the territory of the Republic of Lithuania. Roubles were changed into coupons in the ratio 1:1. This way on October 1, 1992 the national currency was introduced and the own monetary system re-established in Lithuania. The Bank of Lithuania acquired the possibility to fulfil the main function of the Central Bank - to regulate the turnover of money, to apoly instruments of monetary policy. The growth of the amount of money and inflation process slowed down, and from December I, 1992 the exchange rate of coupon against rouble became stronger. The variation of the exchange rate of coupon towards convertible currencies became smaller, though their exchange rates towards our money grew. The state had a possibility to prepare for changing temporary money-coupons into litas.

Interest is the amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period. Interest rate is the price of lending money. Investigation of interest rates dynamics and its factors can be carried out according to three main theories: unbiased expectations, liquidity preference, and market segmentation theory. Interest rates' factors are divided into three groups: economical, political, and social factors. Lithuanian banks' Ipan and time deposit interest rates analysis shows, that there were decreasing interest rates and net interest margin in the period of 1994-2006. The main reason, which influenced interest rates to fall, was decreasing price level. Crisis in Russia caused sharp increase in. loan and time deposit interest rates in 1999. On the other hand, competition in the loan and time deposit markets became more severe and it led to a decrease in interest rates. Economic cycle in Lithuania and general interest rates level have the opposite relation, which was confirmed by correlation analysis. As a result of analysis the authors make the interest rates forecast. As history of last years shows - ECB will increase the minimum bid rate on the main refinancing operations within limits of 0.25-0.5 p. p. This would effect interest rates level in Lithuania from 0.4 to 0.7 p.p. in 2007. For the reason that inflation in fast growing country will reach 4.5 percent (forecast), real interest rate of deposits in most banks will be negative.

Interest is the amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period. Interest rate is the price of lending money. Investigation of interest rates dynamics and its factors can be carried out according to three main theories: unbiased expectations, liquidity preference, and market segmentation theory. Interest rates' factors are divided into three groups: economical, political, and social factors. Lithuanian banks' Ipan and time deposit interest rates analysis shows, that there were decreasing interest rates and net interest margin in the period of 1994-2006. The main reason, which influenced interest rates to fall, was decreasing price level. Crisis in Russia caused sharp increase in. loan and time deposit interest rates in 1999. On the other hand, competition in the loan and time deposit markets became more severe and it led to a decrease in interest rates. Economic cycle in Lithuania and general interest rates level have the opposite relation, which was confirmed by correlation analysis. As a result of analysis the authors make the interest rates forecast. As history of last years shows - ECB will increase the minimum bid rate on the main refinancing operations within limits of 0.25-0.5 p. p. This would effect interest rates level in Lithuania from 0.4 to 0.7 p.p. in 2007. For the reason that inflation in fast growing country will reach 4.5 percent (forecast), real interest rate of deposits in most banks will be negative.

Interest is the amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period. Interest rate is the price of lending money. Investigation of interest rates dynamics and its factors can be carried out according to three main theories: unbiased expectations, liquidity preference, and market segmentation theory. Interest rates' factors are divided into three groups: economical, political, and social factors. Lithuanian banks' Ipan and time deposit interest rates analysis shows, that there were decreasing interest rates and net interest margin in the period of 1994-2006. The main reason, which influenced interest rates to fall, was decreasing price level. Crisis in Russia caused sharp increase in. loan and time deposit interest rates in 1999. On the other hand, competition in the loan and time deposit markets became more severe and it led to a decrease in interest rates. Economic cycle in Lithuania and general interest rates level have the opposite relation, which was confirmed by correlation analysis. As a result of analysis the authors make the interest rates forecast. As history of last years shows - ECB will increase the minimum bid rate on the main refinancing operations within limits of 0.25-0.5 p. p. This would effect interest rates level in Lithuania from 0.4 to 0.7 p.p. in 2007. For the reason that inflation in fast growing country will reach 4.5 percent (forecast), real interest rate of deposits in most banks will be negative.

Interest is the amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period. Interest rate is the price of lending money. Investigation of interest rates dynamics and its factors can be carried out according to three main theories: unbiased expectations, liquidity preference, and market segmentation theory. Interest rates' factors are divided into three groups: economical, political, and social factors. Lithuanian banks' Ipan and time deposit interest rates analysis shows, that there were decreasing interest rates and net interest margin in the period of 1994-2006. The main reason, which influenced interest rates to fall, was decreasing price level. Crisis in Russia caused sharp increase in. loan and time deposit interest rates in 1999. On the other hand, competition in the loan and time deposit markets became more severe and it led to a decrease in interest rates. Economic cycle in Lithuania and general interest rates level have the opposite relation, which was confirmed by correlation analysis. As a result of analysis the authors make the interest rates forecast. As history of last years shows - ECB will increase the minimum bid rate on the main refinancing operations within limits of 0.25-0.5 p. p. This would effect interest rates level in Lithuania from 0.4 to 0.7 p.p. in 2007. For the reason that inflation in fast growing country will reach 4.5 percent (forecast), real interest rate of deposits in most banks will be negative.