The principal changes in the Bank of Latvia's assets and liabilities on the 30 June 2010 balance sheet as compared to 31 May 2010 and the reasons for these changes.
- An increase of 21.2 million lats or 0.5% in foreign assets mostly on account of a rise in the funds deposited in foreign currencies by the Latvian government and a change in the lats equivalent of financial instruments.
- A decrease of 31.1 million lats or 62.9% in foreign liabilities mostly on account of a change in the lats equivalent of financial instruments. A rise in the amount of funds deposited by the European Commission had an increasing effect.
- A rise of 26.5 million lats or 0.9% in domestic liabilities as a result of a 47.1 million lats increase and 20.8 million lats decrease in the respective balances of the credit institutions' funds and government funds with the Bank of Latvia.
- On the liabilities side of the balance sheet, the amount of lats in circulation increased by 19.4 million lats or 2.4% mainly due to the above changes.
- An increase of 6.3 million lats or 2.3% in the capital and reserves mostly on account of the revaluation of securities and other financial instruments.
Vilnis Purvins
Deputy Head of Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia