- A decrease of 573.9 million lats or 18.4 % in foreign assets as the Bank of Latvia sold foreign currency and due to the decrease in the amount of the funds deposited by the Latvian government. Whereas income from debt securities and an increase in the funds deposited by the European Commission had an increasing effect on foreign assets.
- A decrease of 52.7 million lats or 23% in foreign liabilities as a result of changes in the value of financial derivatives. The funds deposited by the European Commission had an increasing effect on foreign liabilities.
- An increase in domestic assets by 367.1 million lats (2.6 times) as the balance of loans granted to credit institutions increased by 366.7 million lats.
- A 176.5 million lats (9.5%) decrease in local liabilities as deposits by the Government and other financial institutions with the Bank of Latvia decreased by 119.0 million and 4.6 million lats respectively.
- Mainly as a result of the above changes, the volume of lats in circulation increased by 7.5 million or 0.7% on the liabilities side of the balance sheet.
- A 14.9 million lats increase in capital and reserves from an increase in the retained profits of the reporting year.
Vilnis Purviņš
Head of Macroeconomic Analysis Section
Monetary Policy Department
Bank of Latvia