Notes to the Bank of Latvia Balance Sheet as at 31 January 2012

Publishing date: 10.02.2012.

The principal changes in the Bank of Latvia's assets and liabilities on the 31 January 2012 balance sheet as compared to 31 December 2011 and the reasons for these changes.

• A decrease of 155.7 million lats or 4.4% in foreign assets mostly as a result of a reduction in the funds deposited in foreign currencies by the Latvian government and a decline in the funds deposited in foreign currencies by commercial banks.
• A decrease of 36.9 million lats or 51.8% in foreign liabilities mostly on account of the result of the revaluation of financial instruments.
• A drop of 108.4 million lats or 5.5% in domestic liabilities mostly due to decreases of 153.4 million lats or 12.8% and 11.7 million lats or 27.5% in the respective balances of credit institution deposits and other financial institution deposits. An increase of 55.9 million lats or 7.6% in the funds deposited by the Latvian government had an increasing effect on domestic liabilities.
• The amount of lats in circulation decreased by 27.8 million lats or 2.4%.
• An increase of 17.2 million lats or 5.2% in capital and reserves predominantly on account of interest income received and the result of the revaluation of financial instruments. Conversely, the realised result gained from investment in financial instruments had a decreasing effect.