Publishing date: 12.01.2012.*
The principal changes in the Bank of Latvia's assets and liabilities on the 31 December 2011 balance sheet as compared to 30 November 2011 and the reasons for these changes.
- A decrease of 150.2 million lats or 4.1% in foreign assets mostly as a result of a reduction in the funds deposited in foreign currencies by the Latvian government. A rise in the amount of funds deposited in foreign currencies by commercial banks had an increasing effect. According to changes in the "Financial Accounting Policy of the Bank of Latvia", the participating interest in the Bank for International Settlements is reported in the balance sheet at fair value, recalculating the comparative balance sheet as at 30 November 2011 accordingly.
- An increase of 33.0 million lats or 84% in foreign liabilities mostly on account of an expansion of funds deposited by the European Commission and the cash collateral received for securing financial transactions as well as the result of the revaluation of financial instruments.
- A drop of 297.9 million lats or 13.1% in domestic liabilities mostly due to decreases of 213.2 million lats or 22.4% and 220.7 million lats or 83.8% in the respective balances of Latvian government funds and other financial institution funds, with a rise of 136.8 million lats or 12.9% in the respective balance of credit institution funds having an increasing effect.
- The amount of lats in circulation increased by 89.9 million lats or 8.4%.
- An increase of 24.9 million lats or 8.2% in capital and reserves predominantly on account of interest income received and the result of the revaluation of financial instruments.
J. Caune
Chief Accountant
Bank of Latvia
* Updated after the Bank of Latvia's financial statements for the year ended 31 December 2011 were published on 16 March 2012.