The principal changes in the Bank of Latvia's assets and liabilities on the 30 April 2010 balance sheet as compared to 31 March 2010 and the reasons for these changes.
- A decrease of 100.1 million lats or 2.6% in foreign assets mostly on account of a reduction in the funds deposited in foreign currencies by the Latvian government.
- An increase of 20.4 million lats or 92.8% in foreign liabilities mostly on account of a change in the lats equivalent of financial instruments and a rise in deposits of international institutions.
- A decrease of 0.9 million lats or 0.6% in domestic assets, following a 1.3 million lats fall in loans granted to credit institutions.
- A drop of 132.5 million lats or 4.5% in domestic liabilities as a result of 147.2 million lats and 23.0 million lats decreases in the respective balances of the government funds with the Bank of Latvia and other domestic liabilities, and a 36.8 million lats increase in credit institutions' funds with the Bank of Latvia.
- On the liabilities side of the balance sheet, the amount of lats in circulation increased by 52.9 million lats or 6.8% mainly due to the above changes.
- A decrease of 41.7 million lats in the capital and reserves was mainly affected by a part of the Bank of Latvia's profit earned in 2009 and appropriated to the state budget in the amount of 48.4 million lats, while the result of the revaluation of securities and other financial instruments had an increasing effect on it.
Vilnis Purvins
Deputy Head of Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia