The principal changes in the assets and liabilities of Latvijas Banka on the 30 November 2020 balance sheet as compared to 31 October 2020 and the reasons for these changes.
In November 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 127.2 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 104.2 million euro, representing an overall rise of 231.4 million euro or 2.4%.
In November 2020, deposits of credit institutions increased by 256.7 million euro or 5.2% 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