The principal changes in the Bank of Latvia's assets and liabilities on the 30 September 2010 balance sheet as compared to 31 August 2010 and the reasons for these changes.

  • An increase of 58.3 million lats or 1.4% in foreign assets mostly on account of the second instalment of the World Bank loan received by the Latvian government. The Bank of Latvia interventions by selling foreign currency had a decreasing effect on foreign assets.
  • A pickup of 6.5 million lats or 22.1% in foreign liabilities mainly as a result of the change in the amount of funds deposited by the European Commission and the amount of financial derivative collaterals, with the change in the lats equivalent of financial instruments having a decreasing effect.
  • A rise of 49.9 million lats or 1.7% in domestic liabilities mostly due to increases of 74.6 million lats or 4.8% and 20 million lats or 98.8% in the respective balances of credit institution funds and other financial institution funds, with a drop of 44.6 million lats or 3.3% in the respective balance of government funds having a decreasing effect.
  • The amount of lats in circulation expanded by 2.4 million lats or 0.3%.
  • A decrease of 0.4 million lats or 0.1% in the capital and reserves predominantly on account of the result of the revaluation of securities, foreign currencies and other financial instruments. Conversely, interest income and the result gained from investment in financial instruments had an increasing effect.

J. Caune
Chief Accountant
Bank of Latvia