The principal changes in the Bank of Latvia's assets and liabilities on the 30 April 2009 balance sheet as compared to 31 March 2009 and the reasons for these changes.
  • A decrease of 230.2 million lats or 9.7% in foreign assets mostly on account of a decrease of 73.3 million lats in the funds deposited by the Latvian government, the Bank of Latvia interventions by selling foreign currency in the amount of 173.9 million lats and a change in the lats equivalent of financial instruments.
  • A decrease of 11.4 million lats or 47.3% in foreign liabilities mostly on account of a change in the lats equivalent of financial instruments.
  • A rise of 20.4 million lats or 7.0% in domestic assets, following a 20.7 million lats increase in loans granted to credit institutions.
  • A drop of 200.0 million lats or 13.0% in domestic liabilities as a result of 161.4 million lats and 39.4 million lats decreases in the respective balances of credit institutions' funds and the government funds with the Bank of Latvia.
  • On the liabilities side of the balance sheet, the amount of lats in circulation increased by 13.3 million lats or 1.6% mainly due to the above changes.
  • A decrease of 11.7 million lats in the capital and reserves resulted from a part of the Bank of Latvia's profit earned in 2008 and appropriated to the state budget in the amount of 16 million lats. Net interest income had an increasing effect on the capital and reserves.

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