The principal changes in the Bank of Latvia's assets and liabilities on the 30 September 2009 balance sheet as compared to 31 August 2009 and the reasons for these changes.
  • An increase of 58.1 million lats or 1.8% in foreign assets mostly on account of an expansion of funds deposited by the Latvian Government and the one-off allocation of the Special Drawing Rights received from the IMF in the amount of 20.5 million lats. This allocation of the SDRs was assigned to all Member States which joined the IMF after 1981. The allocation is aimed at smoothing the uneven distribution of SDRs when more than 1/5 Member States had not received allocations, since they joined the IMF after 1981. Latvia received such an allocation for the first time.
  • An increase of 7.2 million lats or 64.5% in foreign liabilities, mostly on account of a rise in the funds deposited by the European Commission and a change in the lats equivalent of financial instruments.
  • A decrease of 13.5 million lats or 4.9% in domestic assets, following a 10.0 million lats fall in loans granted to credit institutions.
  • A rise of 39.2 million lats or 1.6% in domestic liabilities as a result of 39.3 million lats and 5.3 million lats increases 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 decreased by 8.0 million lats or 1.1% mainly due to the above changes.
  • An increase of 6.1 million lats or 2.1% in the capital and reserves mostly on account of the net interest income received in September and the result of the revaluation of securities and financial instruments.

Vilnis Purvins
Deputy Head of Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia