The principal changes in the Bank of Latvia's assets and liabilities on the 31 January 2010 balance sheet as compared to 31 December 2009 and the reasons for these changes.
- An increase of 69.9 million lats or 2.1% in foreign assets mostly on account of the EU funds received by the Latvian government in the amount of more than 70 million lats.
- A decrease of 29.8 million lats or 41.7% in foreign liabilities mostly on account of a reduction in the funds in foreign currencies deposited by the European Commission in the amount of 25.8 million lats and a change in the lats equivalent of financial instruments.
- A decrease of 8.3 million lats or 4.7% in domestic assets, following an 8.7 million lats fall in loans granted to credit institutions.
- A rise of 116.9 million lats or 4.8% in domestic liabilities as a result of a 156.3 million lats increase and 39.7 million lats decrease in the respective balances of the government funds and credit institutions' funds with the Bank of Latvia.
- On the liabilities side of the balance sheet, the amount of lats in circulation decreased by 35.7 million lats or 4.5% mainly due to the above changes.
- An increase of 10.2 million lats or 3.5% in the capital and reserves mostly on account of the net interest income received in January, the result of the investment in financial instruments, as well as the revaluation of securities and other financial instruments.
Vilnis Purvins
Deputy Head of Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia