The principal changes in the Bank of Latvia's assets and liabilities on the 28 February 2010 balance sheet as compared to 31 January 2010 and the reasons for these changes.
- An increase of 109.7 million lats or 3.2% in foreign assets, mostly on account of an expansion of funds deposited by the Latvian government as a result of the third instalment (140.7 million lats) from the International Monetary Fund loan.
- A decrease of 1.7 million lats or 4.0% in foreign liabilities, mostly on account of a reduction in the deposited European Commission funds.
- A decrease of 13.3 million lats or 8.0% in domestic assets, following a 14.1 million lats fall in loans granted to credit institutions.
- A rise of 73.2 million lats or 2.9% in domestic liabilities as a result of a 187.2 million lats increase and 113.8 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 15.3 million lats or 2.0% mainly due to the above changes.
- An increase of 9.6 million lats or 3.2% in the capital and reserves mostly on account of the net interest income received and the result of the revaluation of securities and other financial instruments.
Vilnis Purvins
Deputy Head of Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia