- An increase of 191.8 million lats or 7.5% in foreign assets, mostly on account of an expansion of funds deposited by the Latvian government as a result of the International Monetary Fund loan. The Bank of Latvia interventions by selling foreign currency had a decreasing effect on foreign assets. Moreover, the Bank of Latvia changed the reporting of assets and liabilities related to the International Monetary Fund on its balance sheet. Latvia's quota in the International Monetary Fund, secured by a promissory note issued by the Government of Latvia, has been excluded from the foreign assets and liabilities respectively and from now on will be reported in the financial statements of the Latvian government.
- An increase in foreign liabilities by 226.6 million lats or 2.3 times, mostly on account of funds received from foreign financial institutions. The above changes in the reporting of assets and liabilities related to the International Monetary Fund had a decreasing effect.
- A rise of 87.7 million lats or 14.8% in domestic assets, following an 84.7 million lats increase in loans granted to credit institutions.
- A rise of 70.6 million lats or 4.2% in domestic liabilities as a result of a 190.1 million lats increase and 130.6 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 26.4 million lats or 2.5% mainly due to the above changes.
- An increase of 8.6 million lats in the capital and reserves as the revaluation account balance grew mostly on account of securities market value fluctuations.
Vilnis Purviņš
Deputy Head of Macroeconomic Analysis Section
Monetary Policy Department
Bank of Latvia