The principal changes in the Bank of Latvia's assets and liabilities on the 31 October 2010 balance sheet as compared to 30 September 2010 and the reasons for these changes.
- An increase of 103.6 million lats or 2.5% in foreign assets mostly on account of the fourth instalment of the European Commission loan received by the Latvian government. The Bank of Latvia interventions by selling foreign currency had a decreasing effect on foreign assets.
- An increase of 19.2 million lats or 53.4% in foreign liabilities, mostly on account of a change in the amount of the funds deposited by the European Commission and a change in the lats equivalent of financial instruments.
- A rise of 69.1 million lats or 2.3% in domestic liabilities mostly due to increases of 72.0 million lats or 5.4% and 9.1 million lats or 22.7% in the respective balances of government funds and other financial institution funds, with the drop of 12.1 million lats or 0.7% in the respective balance of credit institution funds having a decreasing effect.
- The amount of lats in circulation expanded by 18.7 million lats or 2.2%.
- A decrease of 3.8 million lats or 1.3% in the capital and reserves predominantly on account of the result of the revaluation of securities, foreign currencies and other financial instruments. Conversely, net interest income had an increasing effect.
Janis Caune
Chief Accountant
Bank of Latvia