The principal changes in the Bank of Latvia's assets and liabilities on the 31 May 2009 balance sheet as compared to 30 April 2009 and the reasons for these changes.
  • A decrease of 33.6 million lats or 1.6% in foreign assets mostly on account of the Bank of Latvia interventions by selling foreign currency in the amount of 78.6 million lats and a change in the lats equivalent of financial instruments. An increase of 42.6 million lats in the funds deposited by the Latvian Government had an increasing effect on the foreign assets.
  • An increase of 11.9 million lats or 93.3% in foreign liabilities mostly on account of a rise in the European Commission funds.
  • A rise of 89.2 million lats or 28.5% in domestic assets, following an 87.2 million lats increase in loans granted to credit institutions.
  • A rise of 60.9 million lats or 4.5% in domestic liabilities as a result of 44.0 million lats and 16.5 million lats increases 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 21.6 million lats or 2.5% mainly due to the above changes.
  • An increase of 4.5 million lats in the capital and reserves on account of the net interest income gained in May.

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