The principal changes in the Bank of Latvia's assets and liabilities on the 31 July 2008 balance sheet as compared to 30 June 2008 and the reasons for these changes.
- A decrease of 54.1 million lats or 1.8% in foreign assets due to the decrease in the amount of the funds deposited by the Latvian Government. Whereas income from debt securities and a change in the lats equivalent of financial instruments had an increasing effect on the foreign assets.
- An increase of 1.3 million lats or 1.2% in foreign liabilities as a result of a change in the lats equivalent of financial derivatives. A decrease in the amount of the European Commission funds had a decreasing effect on foreign liabilities.
- A drop of 70.8 million lats or 3.8% in domestic liabilities as a result of 54.4 million lats and 20.4 million lats decreases in the respective balances of the government funds and credit institutions' funds with the Bank of Latvia. Whereas deposits from other financial institutions held by the Bank of Latvia increased by 4.6 million lats.
- On the liabilities side of the balance sheet, the amount of lats in circulation increased by 4.5 million lats or 0.5% mainly due to the above changes.
- An increase of 11.1 million lats in the capital and reserves as the revaluation account balance increased due to securities market value fluctuations and retained earnings of the reporting year grew.
Vilnis Purvins
Head of Macroeconomic Analysis Division
Monetary Policy Department
Bank of Latvia