Notes to the Bank of Latvia Balance Sheet as at 30 June 2011

The principal changes in the Bank of Latvia's assets and liabilities on the 30 June 2011 balance sheet as compared to 31 May 2011 and the reasons for these changes.

• An increase of 143 million lats or 3.9% in foreign assets mostly as a result of growth in the funds deposited in foreign currencies by the Latvian government, with foreign exchange interventions having a decreasing effect.
• An increase of 0.32 million lats or 1.2% in foreign liabilities primarily on account of a rise in the funds deposited by the European Commission, with the result of the revaluation of financial instruments having a decreasing effect.
• An increase of 121.8 million lats or 4.9% in domestic liabilities mostly due to a rise of 243.2 million lats or 27.2% in the Latvian government deposits, with a decline of 121.9 million lats or 8.04% in credit institution deposits having a decreasing effect.
• The amount of lats in circulation has expanded by 19.4 million lats or 2.1%.
• An increase of 1.0 million lats or 0.4% in the capital and reserves mostly on account of the interest income received and the result gained from investment in financial instruments. The result of the revaluation of foreign currencies, gold and securities had a decreasing effect.