The principal changes in the Bank of Latvia's assets and liabilities on the 31 March 2009 balance sheet as compared to 28 February 2009 and the reasons for these changes.
  • A decrease of 752.8 million lats or 24.0 % in foreign assets mostly on account of a decrease of 592.6 million lats in the funds deposited by the Latvian Government, the Bank of Latvia interventions by selling foreign currency in the amount of 115.0 million lats and a change in the lats equivalent of financial instruments.
  • A decrease of 262.0 million lats or 91.6 % in foreign liabilities mostly on account of repaying funds to foreign financial institutions for funds received in December 2008, as well as a change in the lats equivalent of financial instruments.
  • A decrease of 338.8 million lats or 53.7% in domestic assets, following a 338.5 million lats fall in loans granted to credit institutions.
  • A drop of 750.0 million lats or 32.7% in domestic liabilities as a result of 123.7 million lats and 633.4 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 decreased by 88.8 million lats or 9.6% mainly due to the above changes.
  • An increase of 9.2 million lats in the capital and reserves on account of the net interest income received in March and the realised gains from investment in financial instruments.

Guntis Kalnins
Senior Economist of the Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia