The principal changes in the assets and liabilities of Latvijas Banka on the 30 April 2020 balance sheet as compared to 31 March 2020 and the reasons for these changes.
In April 2020, loans granted as a result of main refinancing operations increased by 1.0 million euro.
On 18 March 2020, the Governing Council of the European Central Bank (ECB) decided to launch a new temporary pandemic emergency purchase programme (hereinafter the "PEPP"), with an overall additional envelope of 750 billion euro. The Governing Council will terminate PEPP net asset purchases once it considers that the COVID-19 crisis phase is over, but in any event not before the end of 2020. As a result of these securities purchases, the balance sheet item "Securities held for monetary policy purposes" grew by 246.5 million euro. Along with the PEPP, there were also continued purchases of securities under the expanded asset purchase programme (APP) that increased the same balance sheet item by 101.4 million euro, representing an overall rise of 347.9 million euro or 4.5%.
In April 2020, deposits of credit institutions dropped by 196.6 million euro or 3.7% as reflected in the balance sheet item "Liabilities to euro area credit institutions related to monetary policy operations denominated in euro".
In April 2020, deposits of the Latvian government increased by 1886.0 million euro, inter alia, through bond issuances and attraction of funds to address the consequences of the COVID-19 crisis.
Mainly as a result of cross-border payments received and made by credit institutions and Latvijas Banka, a decrease was recorded in liabilities to the ECB reported under the balance sheet item "Liabilities related to TARGET2 and national central bank correspondent accounts (net)", reflecting the settlement result in the TARGET2 settlement system.
Jānis Caune
Head of Finance Department