The principal changes in the Bank of Latvia's assets and liabilities on the 31 May 2008 balance sheet as compared to 30 April 2008 and the reasons for these changes.
- An increase of 3.0 million lats or 0.1% in foreign assets as the government funds and income from debt securities expanded. A change in the lats equivalent of securities and financial derivatives as well as in the amount of the European Commission funds had a decreasing effect on foreign assets.
- A decrease of 0.5 million lats or 0.4% in foreign liabilities, mostly on account of a drop in the European Commission funds with the Bank of Latvia.
- A rise of 3.0 million lats or 8.7% in domestic assets following a 3.1 million lats increase in other domestic assets.
- A rise of 43.0 million lats or 2.4% in domestic liabilities as a result of a 137.9 million lats increase in the government funds with the Bank of Latvia and 90.8 million lats and 4.6 million lats decrease in the respective balances of the credit institutions' funds and other financial institutions' funds with the Bank of Latvia.
- On the liabilities side of the balance sheet, the amount of lats in circulation decreased by 15.5 million lats or 1.5% mainly due to the above changes.
- A decrease of 21.1 million lats in the capital and reserves as the revaluation account balance changed due to securities market value and foreign exchange rate fluctuations and retained earnings of the reporting year decreased.
Monetary Policy Department
Head of Macroeconomic Analysis Division
Bank of Latvia