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The principal changes in the assets and liabilities of Latvijas Banka on the 30 June 2018 balance sheet as compared to 31 May 2018 and the reasons for these changes.

In June 2018, loans granted as a result of targeted longer-term refinancing operations by Latvijas Banka decreased by 188.9 million euro or 76.3%.

Following the decisions of the Governing Council of the European Central Bank (ECB) on the expanded asset purchase programme (APP), the balance sheet item "Securities held for monetary policy purposes" grew by 94.8 million euro or 1.3% in June 2018, mostly on account of the purchase of securities.

In June 2018, deposits of credit institutions declined by 6.6 million euro or 0.1% as reflected in the balance sheet item "Liabilities to euro area credit institutions related to monetary policy operations denominated in euro".

Mainly as a result of cross-border payments received and made by credit institutions and Latvijas Banka, a decrease was recorded in liabilities to the ECB reported under the balance sheet item "Liabilities related to TARGET2 and national central bank correspondent accounts (net)", reflecting the settlement result in the TARGET2 settlement system.

J. Caune
Chief Accountant
Latvijas Banka