The principal changes in the assets and liabilities of Latvijas Banka on the 30 June 2015 balance sheet as compared to 31 May 2015 and the reasons for these changes.
In June 2015, the amount of loans granted by Latvijas Banka as a result of targeted longer-term refinancing operations grew by 30.0 million euro or 17.6%.
Following the implementation of the decision taken by the Governing Council of the European Central Bank (ECB) on 22 January 2015 on the expanded asset purchase programme (APP), the balance sheet caption "Securities held for monetary policy purposes" grew by 191.5 million euro or 36.0% in June 2015, primarily as a result of securities purchases.
Considering the fact that euro cash is issued in circulation by all national central banks (NCBs) of the Eurosystem, each NCB reports banknotes in circulation on its balance sheet in proportion to the share of the ECB's capital in the total amount of euro banknotes issued by the Eurosystem rather than the actual amount issued. Consequently, the amount of banknotes actually issued is adjusted in the balance sheet (increased in the case of Latvijas Banka) as the proportionate share of Latvijas Banka in the total amount of banknotes issued by the Eurosystem is larger than the amount of euro banknotes issued in Latvia. As a result of the above adjustment, the respective claims on the ECB for the allocation of banknotes are reported under Latvijas Banka's balance sheet caption "Claims related to other operational requirements within the Eurosystem". As at 30 June 2015, the balance sheet caption "Banknotes in circulation" comprised the euro banknotes actually issued in circulation in the amount of 563.3 million euro.
In June 2015, deposits of credit institutions grew by 85.2 million euro or 3.3% as reflected in the balance sheet caption "Liabilities to euro area credit institutions related to monetary policy operations denominated in euro".
Mainly as a result of cross-border payments received and made by credit institutions and Latvijas Banka, an increase was recorded in liabilities to the ECB reported under the balance sheet caption "Liabilities related to TARGET2 and national central bank correspondent accounts (net)", reflecting settlement result in the TARGET2 settlement system.