(Unofficial translation)

APPROVED
by the Board of the Bank of Latvia
Resolution No. 503/1
of August 2, 2001

Regulation for the Calculation of RIGIBID AND RIGIBOR

In effect as of September 1, 2001

"Regulation for the Calculation of RIGIBID and RIGIBOR" (hereinafter, the Regulation) shall govern the procedure for calculating the Latvian interbank deposit and credit interest rate indices. The Regulation has been developed pursuant to the Republic of Latvia Law "On the Bank of Latvia".

1. TERMS USED IN THE REGULATION

1.1 Bank - a bank or a branch (subsidiary) of a foreign bank registered in the Republic of Latvia.

1.2 RIGIBID (Riga Interbank Bid Rate) - the index of Latvian interbank deposit interest rates.

1.3 RIGIBOR (Riga Interbank Offered Rate) - the index of Latvian interbank credit interest rates.

1.4 The RIGIBID and RIGIBOR commission (hereinafter, the commission) - a commission whose staff is approved by the Chairman of the Board of the Bank of Latvia, consists of five employees of the Bank of Latvia and coordinates all the activities related to calculating the RIGIBID and RIGIBOR.

1.5 Quotation list - a list of banks approved by resolution of the commission, whose valuation of the prices of resources in lats is the basis for the calculation of RIGIBID and RIGIBOR.

1.6 The lats money market - an interbank market where lats money market instruments with a maturity of up to one year (inclusive) are being sold.

2. GENERAL PROVISIONS

2.1 RIGIBID and RIGIBOR shall reflect the lats money market interest rates that are determined by the banks included in the quotation list and that are the lats money market instrument offering rates to other banks.

2.2 The Bank of Latvia shall calculate and publish RIGIBID and RIGIBOR indices every business day at 12.00 noon local time, using the lats money market interest rates quoted in the Reuters electronic information system by the banks included in the quotation list. The highest and the lowest lats money market interest rates shall be discarded and the remaining used to calculate the mean lats money market interest rate.

2.3 RIGIBID and RIGIBOR shall be calculated for deals with an overnight maturity, a maturity of 1 day (starting with the next business day), 1 week, 1, month, 6 months or 12 months.

2.4 RIGIBID and RIGIBOR shall be calculated for the first day of the deal of the relevant maturity (T+2; except deals with an overnight maturity).

2.5 Information on RIGIBID and RIGIBOR shall be disseminated by the Bank of Latvia using the electronic information system Reuters and the Internet.

3. THE INCLUSION OF BANKS IN THE QUOTATION LIST

3.1 If a bank wishes to be included in the quotation list, it shall submit a written application to that effect to the commission.

3.2 Upon prior consultation with the banks included in the quotation list, the commission  shall adopt a resolution "On the Quotation List" (Appendix 1) approving inclusion of the respective bank in the quotation list.

3.3 Only those banks that are active participants in the lats money market and capable of making active market transactions in accordance with the lats money market interest rates quoted by same banks even in a fluctuating financial market shall be included in the quotation list.

3.4 Only those banks whose percentage of transactions in the lats money market has been the greatest shall be included in the list.

3.5 Only secure banks of high ethical standards and spotless reputation shall be included in the list.

3.6 The quotation list shall be disseminated via the information system Reuters and the Internet.

4. OBLIGATIONS OF BANKS INCLUDED IN THE QUOTATION LIST

4.1 To calculate RIGIBID and RIGIBOR, lats money market interest rates shall be used, which the banks included in the quotation list quote:
4.1.1 using all available information;
4.1.2 for all maturities referred to in Article 2.3;
4.1.3 every business day at 12.00 noon, Latvian time;
4.1.4 expressing them as a decimal with two decimal points;
4.1.5 assuming that there are 360 days in a year.

4.2 The banks included in the quotation list shall promptly inform the Bank of Latvia Financial Market Analysis Division of the Monetary Policy Department in writing about the home page addresses of the Reuters electronic information system where the lats market interest rates quoted by them are published.

4.3 The banks included in the quotation lists shall take the necessary organizational steps to ensure that the lats money market interest rates quoted by them are available constantly and without interruption caused by employee errors or technical reasons.

4.4 If, for technical reasons, a bank included in the quotation list cannot publish the quoted lats money market interest rates pursuant to the provisions of Article 4.1.3, it shall promptly provide the above information to the Bank of Latvia Financial Market Analysis Division of the Monetary Policy Department by fax or by phone, so that it can be included in the RIGIBID and RIGIBOR calculations.

5. OBLIGATIONS OF THE BANK OF LATVIA

5.1 The commission shall monitor the compliance of the banks included in the quotation list with the requirements of this Regulation.

5.2 The commission shall regularly, at least once every quarter, review the quotation list to ensure that the banks included in the list meet the requirements of Articles 3.3-3.5.

5.3 The commission shall take the necessary organizational steps to ensure that RIGIBID and RIGIBOR are calculated in due time and without any delay that might be caused by employee error or technical reasons.

5.4 If, for any technical reasons, it is impossible to calculate RIGIBID and RIGIBOR in due time, the commission shall take the necessary steps to calculate these indices as soon as possible or, upon prior agreement with the banks included in the quotation list, set an alternative index for the respective business day.

5.5 If any amendments are made to this Regulation or a new quotation list is approved, the commission shall inform the banks included in the quotation list thereof not later than five days before such amendments or such quotation list becomes effective.

5.6 If the commission decides to strike a bank from the quotation list, it provides that bank with a written explanation as to why such a decision was adopted.

5.7 Restoration of a bank stricken from the quotation list to the list shall take place as provided for in Article 3.

6. RESPONSIBILITY FOR NON-COMPLIANCE

6.1 If a bank included in the quotation list fails to comply with the requirements of this Regulation, the commission may
6.1.2 issue a warning to that bank and instruct it to immediately make good on such non-compliance;
6.1.3 if such warning is not heeded, strike the bank from the quotation list.

6.2 The commission is authorized to strike a bank from the quotation list if the commission or a bank included in the quotation list has become aware that the bank has deliberately manipulated the quotations with the aim of influencing the results of the RIGIBID and RIGIBOR calculations.