The euro payment system TARGET (Trans-European Automated Real-time Gross settlement Express Transfer System) is a real time payment system used by the national central banks of the Member States of the European Union (EU), participants in the Economic and Monetary Union, together with the European Central Bank (referred to as the Eurosystem) to implement the single monetary policy and promote smooth operation of the euro payment system. EU banks use this system for financial market settlements as well as large value and urgent customer payments.
TARGET2 is operational since 2007, increasing payment efficiency in Europe and providing an opportunity for further integration of the European financial infrastructures. The main advantage of TARGET2 is the single shared technical platform developed to ensure equal conditions in all countries who have joined TARGET2 and a possibility to connect new participating countries to it (for further information please refer to ECB website). The Eurosystem together with market participants has started preparations for the launch of renewed TARGET system in 2021.
Legally and operationally the decentralisation principle is retained with respect to each Member State joining the TARGET2 system. TARGET2-Latvija started its operation on 19 November 2007, and the Latvian commercial banks, Latvijas Banka and the Treasury have joined it as the direct participants. TARGET2-Latvija is also used for settlement of ancillary systems: Latvijas Banka's electronic clearing system (EKS) and "Worldline Latvia". TARGET2-Latvija provides system participants efficient, fast and secure infrastructure for settlement of euro payments in central bank money of Latvijas Banka.
Legal documents on TARGET2-Latvija (available only in Latvian)