The principal changes in the assets and liabilities of Latvijas Banka on the 31 July 2020 balance sheet as compared to 30 June 2020 and the reasons for these changes.
In July 2020, loans granted as a result of targeted longer-term refinancing operations remained unchanged.
Following the decisions of the Governing Council of the European Central Bank (ECB), Latvijas Banka continued purchases under a new temporary pandemic emergency purchase programme (hereinafter the "PEPP"), As a result of these securities purchases, the balance sheet item "Securities held for monetary policy purposes" grew by 255.2 million euro. Along with the PEPP, there were also continued purchases of securities under the expanded asset purchase programme (APP) that increased the same balance sheet item by 74.6 million euro, representing an overall rise of 329.8 million euro or 3.7%.
In July 2020, deposits of credit institutions dropped by 504.3 million euro or 10.1% 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, 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.
Jānis Caune
Head of Finance Department