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

In July 2018, loans granted as a result of targeted longer-term refinancing operations by Latvijas Banka remained unchanged.

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 40.9 million euro or 0.6% in July 2018, mostly on account of the purchase of securities.

In July 2018, deposits of credit institutions declined by 1.298 million euro or 24.6% as reflected in the balance sheet item "Liabilities to euro area credit institutions related to monetary policy operations denominated in euro". The fall was mostly a result of the decision of the European Central Bank to withdraw the licence of the ABLV Bank AS. Consequently, the above deposits were reclassified to the balance sheet item "Liabilities to other euro area residents denominated in euro" which in its turn increased by 1.250 million euro or 183.9%.

Mainly as a result of cross-border payments received and made by credit institutions and Latvijas Banka, an increase 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.

G. Gersons
Acting Chief Accountant
Latvijas Banka