Glossary of statistical concepts

The sub-section "Glossary of Statistical Concepts" of the section „Statistics” of the Bank of Latvia website comprises concepts that are frequently used in the sub-sections "Main indicators" and "Descriptions" and their definitions. These concepts are consistent with those of the European Central Bank and the International Monetary Fund.
Balance of payments

The balance of payments is a statistical statement summarising transactions between Latvia's residents and the rest of the world. It incorporates the current account, the capital account and the financial account.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Capital account (in a Balance of Payments context)

A balance of payments component reflecting gross acquisitions/disposals of non-produced non-financial assets and capital transfers between Latvia's residents and the rest of the world.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Capital transfers

Transactions where financial or non-financial assets intended for investment are provided or received without any compensation.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Captive financial institutions and money lenders

Financial institutions which are neither engaged in financial intermediation nor in providing financial auxiliary services, and where most of either their assets or their liabilities are not transacted on open markets. This sector includes institutional units that hold controlling-levels of equity of a group of subsidiary corporations and whose principal activity is owning the group without providing any other service to the businesses in which the equity is held, that is, they do not administer or manage other units.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Central banks

Institutions whose principal activity is issuing the national currency, preserving the internal and external value of the national currency and managing the country's international reserves or any part thereof.
The definition of the concept is consistent with Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional accounts in the Community.

Central government

Public institutional units, including ministries, embassies, representative offices, agencies, councils, educational, healthcare, law enforcement, cultural and other public institutions whose competence covers the whole economic territory of the country, except for the administration of social security funds. The list of the institutional units is compiled by the Central Statistical Bureau of Latvia in accordance with the requirements of the European System of Accounts 2010.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Charges for the use of intellectual property n.i.e.

Charges for the use of proprietary rights (such as patents, trademarks, copyrights, industrial processes and designs including trade secrets and franchises), charges for licences to reproduce or distribute intellectual property embodied in produced originals or prototypes (such as copyrights on books and manuscripts, computer software, cinematographic works, and sound recordings) and related rights (such as for live performances and television, cable, or satellite broadcast).
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Compensation of employees

Wages and salaries, including social security contributions to social security and pension funds made by employers on behalf of employees.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Computer services

Hardware and/or software-related services, and data-processing services. Hardware and software consultancy and implementation services; maintenance and repair of computers and peripheral equipment; disaster recovery services, provision of advice and assistance on matters related to the management of computer resources; analysis, design and programming of systems ready to use (including web page development and design), and technical consultancy related to software; licences to use non-customised software; development, production, supply and documentation of customised software, including operating systems made to order for specific users; systems maintenance and other support services, data-processing services, web page hosting services (i.e. the provision of server space on the Internet to host clients' web pages); and computer facilities management.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Construction

The creation, renovation, repair or extension of fixed assets in the form of buildings, land improvements of an engineering nature and other engineering constructions (including roads, bridges, dams, etc.). Installation and assembly work, site preparation and general construction, specialised services such as painting, plumbing and demolition, and management of construction projects.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Consumer credits

Loans to households and non-profit institutions serving households for purchasing consumer goods, such as household appliances and cars, and paying for services, such as medical care and travels, that are not related to gaining profit, including loans granted in compliance with the provisions of an agreement on using settlement account.
The definition of the concept is consistent with the Regulation (EC) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (Recast) (ECB/2013/33).

Convenience credit card credits

Credits granted by an MFI to a household or non-financial corporation as a card holder at an interest rate of 0% in the period starting from the date of effecting the payment transaction with the card during one billing cycle and up to the date at which the debit balance from this billing cycle becomes due.
The definition of the concept is consistent with Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (recast) (ECB/2013/33).

Currency

Banknotes and coins in circulation issued by central banks or central government and commonly used to make payments.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6).

Current account

A balance of payments component reflecting flows in goods, services, primary income and secondary income between Latvia's residents and the rest of the world.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Current transfers

Transactions where a resident, without any compensation, provides a non-resident with or receives from non-resident goods, services, financial or non-financial assets not intended for investment. Current transfers fall into current transfers of the general government and current transfers of other sectors. Current transfers of the general government are those where either the donor or the recipient is the central government or local governments of Latvia.
The definition of the concept is consistent with Balance of Payments Manual 5th edition.

Debt instruments (in a Direct Investment context)

Trade credits, borrowing and lend­ing transactions conducted between direct investors and direct investment enterprises, mutual acquisitions and disposals of debt securities issued by direct investors and direct investment enterprises, as well as other mutual assets and liabilities of direct investors and direct investment enterprises. Assets and liabilities vis-à-vis sister companies classified in the same direct investment group are also included.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Debt securities (short-term and long-term)

Securities representing an obligation and a promise on the part of the issuer to make one or more payment(s) to the holder of the securities at a specified future date or dates (e.g. bonds, notes). Such securities usually carry a specific rate of interest (the coupon) or are sold at a discount to the amount that will be repaid at maturity.
Short-term debt securities are debt securities issued with an original maturity of up to one year (inclusive).
Long-term debt securities are debt securities issued with an original maturity of over one year.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Deposits

Funds that are deposited with MFIs for a specified or unspecified period of time, with or without interest.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6).
Related definitions: Transferable deposits and Other deposits

Deposits redeemable at notice

Funds that are deposited with an MFI without a specified maturity and may be withdrawn on demand either subject to notifying the MFI within an agreed period of notice or subject to payment of a substantial penalty (e.g. savings deposits).
The definition of the concept is consistent with Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (recast) (ECB/2013/33).

Direct investment

Investment by an investor (direct investor) made directly or indirectly (through subsidiaries or associated companies) to acquire a lasting interest (corresponding to at least 10% ownership of ordinary shares or voting rights) in an enterprise (direct investment enterprise). The components of direct investment are equity and debt instruments.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund and Benchmark Definition of Foreign Direct Investment (4th edition) of the Organisation for Economic Co-operation and Development.

Employee stock options

Agreements made on a given date under which an employee has the right to purchase a given number of shares of the employer's stock at a stated price either at a stated time or within a period of time immediately following the vesting date.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Equity

A financial asset that is a claim on the residual value of a corporation, after the claims of all creditors have been met. It incorporates listed shares, unlisted shares and other equity.
In a financial account and foreign direct investment context cross-border investment in real estate are also included.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Equity and investment fund shares or units
see Equity and Investment fund shares or units
Extended credit card credits

Credits subsequent to the convenience credit card credits, i.e. a debit balance on the card account which has not been settled when it was first possible and for which an interest rate or tiered interest rate, usually higher than 0%, are charged. Often, the holder of a card shall pay minimum monthly instalments to repay the extended credit at least partially.
The definition of the concept is consistent with Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (recast) (ECB/2013/33).

External debt

External debt data (gross) present debt-related liabilities between Latvia's residents and the rest of the world. The net external debt position is equal to gross external debt less the respective items of foreign assets.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund and External Debt Statistics: Guide for Compilers and Users (2013) of the International Monetary Fund.

Financial account (in a Balance of Payments context)

A balance of payments component reflecting financial assets and financial liabilities (direct investment, portfolio investment, financial derivatives, other investment and reserve assets) between Latvia's residents and the rest of the world.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Financial accounts

Financial accounts is a part of the system of national accounts, comprising outstanding amounts, transactions, revaluation changes due to exchange rate fluctuations, revaluation changes due to price changes and other changes in financial instruments broken down by sector and counterparty sector.
The definition of the concept is consistent with Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional accounts in the Community.

Financial auxiliaries

Financial corporations that are primarily engaged in auxiliary financial activities, i.e. activities that are closely related to financial intermediation but are not financial intermediation themselves, e.g. investment brokers who do not engage in financial intermediation services on their own behalf, corporations that provide infrastructure for financial markets, supervisory institutions of monetary financial institutions, financial institutions and the financial market (Financial and Capital Market Commission, NASDAQ OMX Riga, Latvian Central Depository, insurance brokerage companies, currency exchange companies, as well as investment management corporations).
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Financial corporations

Institutional units that are independent legal entities and market producers (institutional units freely selling financial services in a market), and whose principal activity is the production of financial services (monetary financial institutions; non-MMF investment funds; other financial intermediaries, except insurance corporations and pension funds; financial auxiliaries; captive financial institutions and money lenders; insurance corporations; pension funds). Also included are institutional units providing financial services, where most of either their assets or their liabilities are not transacted on open markets.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Financial derivatives

Financial instruments linked to a specified financial instrument or indicator or commodity, through which specific financial risks can be traded in financial markets in their own right. Financial derivatives meet the following conditions: they are linked to a financial or non-financial asset, to a group of assets, or to an index; they are either negotiable or can be offset on the market; and no principal amount is advanced to be repaid. For example: Options, Forwards, Swaps, Forward rate agreements (FRAs), credit derivatives.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Financial derivatives and employee stock options
see Financial derivatives and Employee stock options
Financial instruments

Financial instruments comprise means of payment, financial claims and claims which are close to financial claims in nature. Financial instruments are broken down mostly on the basis of their liquidity.
The definition of the concept is consistent with Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional accounts in the Community.

Financial services

Explicitly charged financial services (commissions and charges related to loans, financial leasing, factoring, financial asset management, financial advisory services, foreign exchange transactions, brokerage services, issue, purchase and sale of securi­ties, and arranging transactions in financial derivatives) and financial intermediation services indirectly measured (margins between interest payable and the reference rate on loans and deposits used by financial corporations for covering their expenses and earning profit).
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

General government

Public institutional units, engaged in production of non-market goods or provision of services intended for individual or collective consumption, or engaged in redistribution of national income or wealth, primarily financed from the contributions (taxes and duties) imposed on economic agents. General government in the Republic of Latvia includes central government, local government and social security funds. The list of the institutional units is compiled by the Central Statistical Bureau of Latvia in accordance with the requirements of the European System of Accounts 2010.

General merchandise

Goods whose economic ownership is changed (exports (dispatches) and imports (arrivals) of goods) and that are not included in other specific categories.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Goods

General merchandise, net exports of goods under merchanting, and non-monetary gold.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Government goods and services n.i.e.

Government transactions (including those of international organisations) in goods and services that cannot be classified under other items.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Gross acquisitions/disposals of non-produced non-financial assets

Transactions in assets used in or required for the manufacture of goods and provision of services that are not produced themselves, and transactions involving non-produced intangibles (patents, copyright, trademarks, franchise, etc).
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Households

Natural persons or groups of natural persons as consumers and producers of goods and providers of non-financial services exclusively for their own final use. Households shall also include sole proprietors as economic units which are established by a natural person or a group of natural persons, provided this natural person or group of natural persons are liable to settle the obligations of the economic units with the whole of their property, and which organise their accounting registers in accordance with the single-entry system.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Information services

News agency services, database services (database conception, data storage and the dissemination of data and databases, including directories and mailing lists), both online and through magnetic, optical or printed media; and web search portals (search engine services that find Internet addresses for clients who input keyword queries). Direct, non-bulk subscriptions to newspapers and periodicals, whether by mail, electronic transmission or other means; other online content provision services; and library and archive services.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Insurance and pension services

Direct insurance and reinsurance services, auxiliary insurance services, pension and standardised guarantee services.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Insurance corporations

Financial corporations that are mainly engaged in financial intermediation as a consequence of the pooling of risks mainly in the form of direct insurance or reinsurance. Insurance corporations provide life or non-life insurance services. This sector comprises insurers and re-insurers.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Insurance, pension and standardised guarantees

see Non-life insurance technical reserves, Provision for calls under standardised guaranteesLife insurance and annuity entitlements and Pension entitlements, claims of pension funds on pension managers, entitlements to non-pension benefits

International institutions

Institutions that are not registered as residents of one country, e.g. the World Bank, the European Bank for Reconstruction and Development, the European Regional Development Fund, the European Investment Bank, the European Social Fund, the European Commission, the Bank for International Settlements and the International Monetary Fund.
The definition of the concept is consistent with the European Central Bank publication Money and Banking Statistics Sector Manual. The codes of international institutions are consistent with the Eurostat Balance of Payments Vademecum.

International investment position

International investment position is a statistical statement reflecting the value and composition of financial assets and financial liabilities between Latvia's residents and the rest of the world, on a specific date, as well as changes in the residual values in the respective time period. Changes in the residual values may occur as a result of transactions (balance of payments data), exchange rate changes, price changes, and other adjustments (mainly due to various reclassifications in the system of information provider, debt capitalisation, etc). International investment position includes direct investment, portfolio investment, financial derivatives, other investment, and reserve assets.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Investment fund shares or units (incl. MMF shares or units)

Equities certifying participation of an investor in an investment fund (incl. in an MMF) and the rights arising from such participation.
The definition of the concept is consistent with European Parlament and Council Regulation (EU) No 549/2013 of 21 May 2013 on the European system of national and regional accounts in the European Union.
Related definitions: MMF shares or units and Non-MMF investment fund shares or units

Investment income

Income from holdings of financial assets and payments on financial liabilities.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Life insurance and annuity entitlements

Financial claims that life insurance policy holders and beneficiaries of annuities have against corporations providing life insurance.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6).

Listed shares

Shares traded on regulated markets.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Loans for house purchase

Loans granted to households and non-profit institutions serving households for purchase of a house, a flat or a plot of land, for building or refurbishment, including those mortgage loans and loans for renovation of a house (a flat) that add value to the economic features of the house (flat).
The definition of the concept is consistent with the Regulation (EC) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (Recast) (ECB/2013/33).

Local government

Institutional units of public administration, whose competence covers only a local economic territory. The list of the institutional units is compiled by the Central Statistical Bureau of Latvia in accordance with the requirements of the European System of Accounts 2010. The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

M0

Monetary base: a monetary aggregate that is calculated on the basis of the Bank of Latvia's methodology and comprises the lats banknotes and coins issued by the Bank of Latvia and demand deposits of resident MFIs and financial institutions (overnight deposits) with the Bank of Latvia.
The definition of the concept is consistent with the methodology of the Bank of Latvia (briefly described in the Bank of Latvia's Annual Report).

M1

A narrow monetary aggregate that is calculated on the basis of the methodology of the European Central Bank and comprises the lats banknotes and coins issued by the Bank of Latvia (less vault cash of MFIs) and overnight deposits in lats and foreign currencies held with MFIs by resident financial institutions, non-financial corporations, households and non-profit institutions serving households and local governments.
The definition of the concept is consistent with the methodology of the European Central Bank.

M2

An intermediate monetary aggregate that is calculated on the basis of the methodology of the European Central Bank and comprises M1 and deposits redeemable at a period of notice of up to and including three months (i.e. short-term savings deposits) and deposits with an agreed maturity of up to and including two years (i.e. short-term time deposits) in lats and foreign currencies held with MFIs by resident financial institutions, non-financial corporations, households and non-profit institutions serving households and local governments.
The definition of the concept is consistent with the methodology of the European Central Bank.

M2X

Broad money: a monetary aggregate that is calculated on the basis of the Bank of Latvia's methodology and comprises the lats banknotes and coins issued by the Bank of Latvia (less vault cash of MFIs) and overnight deposits and time deposits in lats and foreign currencies (including deposits redeemable at notice and repurchase agreements) held with MFIs by resident financial institutions, non-financial corporations, households and non-profit institutions serving households. M2X incorporates deposits made by local governments as a net item on the demand side.
The definition of the concept is consistent with the methodology of the Bank of Latvia (briefly described in the Bank of Latvia's Annual Report).

M3

A broad monetary aggregate that is calculated on the basis of the methodology of the European Central Bank and comprises M2, repurchase agreements, debt securities with a maturity of up to and including two years issued by MFIs and money market fund shares and units.
The definition of the concept is consistent with the methodology of the European Central Bank.

Manufacturing services

Processing, assembly, labelling, packing, ect. of goods owned by others. Include only those services after which the acquired goods are returned to the country from which they arrived for processing; only the value for the provided services is reported.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

MMF shares or units
see Investment fund shares or units
Monetary financial institutions (MFIs)

Central bank, credit institutions, credit unions, money market funds (MMFs) and other financial institutions whose business is to receive deposits or close substitutes for deposits from customers other than MFIs and, on their own account, to grant credits and invest in securities; also e-money institutions, whose main business is issuing of e-money.
The definition of the concept is consistent with the Regulation (EC) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (Recast) (ECB/2013/33).

Monetary gold

Gold, which is a component of foreign reserves assets. Monetary gold is held by central bank or central government and it is subject to the effective control of those institutions.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Money market fund

An open-end investment fund meeting the following criteria:
1. the investment management corporation managing the fund shall make investments, preserving the fund's principal and providing a return in line with the interest rate on money market instruments, calculate the fund's net asset value and the price of its units on a daily basis, as well as sell and repurchase its units;
2. its investments shall be made in financial instruments with a residual maturity up to and including 2 years (for a short-term money market fund – up to and including 397 days), and time to the next interest rate reset date – up to and including 397 days);
3. the weighted average maturity of its investment portfolio shall be up to and including 6 months (for a short-term money market fund – up to and including 60 days) and the weighted average residual maturity shall be up to and including 12 months (for a short-term money market fund – up to and including 120 days).

Net exports of goods under merchanting

The purchase of goods combined with the subsequent resale of the same goods without the goods being present in the buyer's economy. Net exports of goods under merchanting represent the difference between sales over purchases of goods for merchanting.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Net financial transactions

The difference between total transactions in financial instrument assets and total transactions in financial instrument liabilities. If a difference is positive, then sector has financed the operations of other sectors; if negative, it has received funds from other sectors. The net financial transactions of residents shows whether the country as a whole has involved external funds or allocated them abroad.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Net financial worth

The difference between total outstanding amount of financial instrument assets and total outstanding amount of financial instrument liabilities. If the net financial worth of a sector is positive, its financial assets exceed liabilities; if negative, liabilities exceed assets. If the net financial worth of residents is positive, external claims exceed external liabilities and non-residents have a debt to the country. Negative net financial worth of residents indicate the debt of the country to non-residents.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Non-financial corporations

Institutional units whose principal activity is producing goods and providing non-financial services, including economic units which are established by a natural person or a group of natural persons, provided this natural person or group of natural persons are liable to settle the obligations of the economic units with the whole of their property, and which organise their accounting registers in accordance with the double-entry system.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Non-life insurance technical reserves

Financial claims that non-life insurance policy holders have against non-life insurance corporations in respect of unearned premiums and claims incurred.
Transactions in non-life insurance technical reserves for unearned premiums and claims incurred relate to risks like accidents, sickness, or fire, and also to reinsurance.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6).

Non-life insurance technical reserves and provision for calls under standardised guarantees
see Non-life insurance technical reserves and Provision for calls under standardised guarantees
Non-MFIs

Clients other than MFIs (incl. general government, non-MMF investment funds, alternative investment funds, other financial intermediaries, financial auxiliaries, captive financial institutions and money lenders, insurance corporations and pension funds, non-financial corporations, households and non-profit institutions serving households).
The definition of the concept is consistent with the Regulation (EC) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (Recast) (ECB/2013/33).

Non-MMF investment fund shares or units
see Investment fund shares or units
Non-MMF investment funds

All collective investment enterprises, except money market funds, which invest in financial and/or non-financial assets, to the extent that the objective is investing capital raised from the public. Their business is to issue investment fund shares or units which are not close substitutes for deposits, and, on their own account, to make investments primarily in financial assets other than short-term financial assets and in non-financial assets (usually real estate).
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Non-monetary gold

Gold not included in reserve assets.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Non-profit institutions serving households

Separate legal entities that provide goods and services to natural persons or groups of natural persons and that derive resources mainly from voluntary contributions in cash or kind from payments made by general governments and from property income. Such institutions are, for instance, trade unions, professional or educational associations, consumer associations, political parties, churches, religious communities, as well as culture, recreation and sports clubs, charity, support and aid organisations.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Non-residents

All institutional units registered abroad, and natural persons whose households are located outside Latvia or who are staying in Latvia for a period of time less than one year (excl. students). Branches of MFIs registered abroad as well as foreign diplomatic and consular representative offices, those of international institutions and other official representative offices in Latvia shall also be considered non-residents.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Other accounts receivable (or payable) excluding trade credits and advances

Financial claims (or liabilities) which are not trade credits and advances and which are created as a counterpart of a financial or a non-financial transaction in cases where there is a timing difference between this transaction and the corresponding payment.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Other accounts receivable/payable
see Trade credits and advances and Other accounts receivable (or payable) excluding trade credits and advances
Other assets

Assets that cannot be classified as other equity; currency and deposits; loans; insurance, pension and standardised guarantees; trade credits and advances.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Other business services

Research and development services (services that are associated with basic research, applied research, and experimental development of new products and processes, commercial research related to electronics, pharmaceuticals and biotechnology), professional and management consulting services (legal services, accounting, management consulting, managerial services and public relations services, advertising, market research, and public opinion polling services), technical, trade-related, and other business services (architectural, engineering, scientific and other technical services, waste treatment and de-pollution, agricultural and mining services, operating leasing services, trade-related services and other business services n.i.e.).
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Other deposits

Deposits other than transferable deposits. Other deposits cannot be used to make payments except on maturity or after an agreed period of notice, and they are not exchangeable for currency or for transferable deposits without some significant restriction or penalty.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Other equity

Equity other than listed shares and unlisted shares. The capital of a central bank and investment of the general government in the capital of international organizations, with the exception of the International Monetary Fund, are also included.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Other financial institutions

In financial accounts publication this sector involves (combines) three other sectors: Other financial intermediaries, except insurance corporations and pension funds; Financial auxiliaries and Captive financial institutions and money lenders

Other financial intermediaries, except insurance corporations and pension funds

Financial corporations that are primarily engaged in financial intermediation by incurring liabilities in forms other than currency deposits or investment fund shares, or in relation to insurance, pension and standardised guarantee schemes from non-monetary financial institutions (inter alia corporations engaged in lending (e.g. financial leasing companies, factoring companies, export/import financing companies), investment brokerage companies, financial vehicle corporations, financial holding corporations, central counterparties, and venture capital corporations
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Other investment

Financial investment other than that included in direct investment, portfolio investment, financial derivatives and reserve assets. Other investment is classified by type of financial instrument: other equity; currency and deposits; loans; insurance, pension and standardised guarantees; trade credits and advances; Special Drawing Rights; other assets and other liabilities.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Other liabilities

Liabilities that cannot be classified as other equity; currency and deposits; loans; insurance, pension and standardised guarantees; trade credits and advances.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Other loans

Loans granted for a purpose other than consumption or house purchase, e.g. loans for business activities, education.
The definition of the concept is consistent with Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (recast) (ECB/2013/33).

Other primary income

Taxes on production and imports (such as customs duties), subsidies (such as subsidies for farmers) and rent (income receivable for putting natural resources at the disposal of another unit).

The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Other reserve assets

Currency and deposits, securities, financial derivatives and other claims in foreign currency that are readily available to and controlled by monetary authorities.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Pension entitlements, claims of pension funds on pension managers, entitlements to non-pension benefits

Financial claims that pension funds hold against pension managers and that current employees and former employees hold against either their employers, an insurer or a scheme designated by the employer to pay pensions as part of a compensation agreement between the employer and the employee.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6).

Pension funds

Financial corporations that insure social risk of their members by accruing and investing voluntary contributions made by members themselves or for their benefit to provide such members with extra old age or disability pension capital. This sector comprises private pension funds and state-funded pension scheme assets.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Personal, cultural and recreational services

Audiovisual and related services (services and associated fees related to the production of motion pictures, radio and television programmes and musical recordings) and other personal, cultural and recreational services (education, health, culture, recreational, etc. services).
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Portfolio investment

Investment in listed shares, unlisted shares and investment fund shares or units and debt securities.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Primary income

The return that accrues for the contribution to the production process or for the provision of financial assets, or for renting natural resources. It comprises compensation of employees, investment income and other primary income.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Provision for calls under standardised guarantees

Financial claims that holders of standardised guarantees have against institutional units providing them.
Provisions relating to calls under standardised guarantees are prepayments of net fees and provisions to meet outstanding calls under standardised guarantees. Like provisions for prepaid insurance premiums and reserves, provisions for calls under standardised guarantees include unearned fees (premiums) and calls (claims) not yet settled.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6).

Quoted shares

Shares placed on regulated markets.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Reinvested earnings

A part of the enterprise's profit or loss that belongs to the direct investor in proportion to its holding and remains at the disposal of the direct investment enterprise.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Repair services

Costs of repair work on ships, aircraft and other fixed assets increasing the value of fixed assets.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Repo transactions

Agreements on selling securities at a specified price on condition that the same or similar securities are repurchased for the specified price at maturity of the transaction.
The definition of the concept is consistent with Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (recast) (ECB/2013/33).

Reserve assets

External foreign currency assets that are readily available to, and controlled by, monetary authorities (monetary gold, Special Drawing Rights, reserve position in the IMF, other reserve assets).
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Reserve position in the IMF

The "reserve tranche" that is, the foreign currency, including SDR, amounts that a member country may draw from the IMF at short notice and any indebtedness of the IMF under a loan agreement in the General Resources Account that is readily available to the member country.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Residents

All institutional units, including foreign ones, registered and operating in the Republic of Latvia, and natural persons whose households are located in Latvia and who do not leave Latvia for a period of time of over one year (excl. students). Latvian diplomatic, consular and other representative offices abroad shall also be regarded as residents. Institutions located in offshore financial centres are treated as residents of the territories in which the centres are located.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Rest of the world

see Non-residents

Reverse repo transactions

Agreements on buying securities at a specified price on condition that the same or similar securities are resold for the specified price at maturity of the transaction.
The definition of the concept is consistent with Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (recast) (ECB/2013/33).

Revolving loans

Loans which have the following features: the borrower may use or withdraw funds from the account up to the pre-approved credit limit without giving prior notice to the MFI; the amount of the available credit may increase or decrease as funds are borrowed or repaid; credit may be used recurrently; there is no obligation to repay the borrowed funds on a regular basis.
The definition of the concept is consistent with Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (recast) (ECB/2013/33).

Secondary income

Transactions where, without any com­pensation, goods, services and financial or non-financial assets not intended for investment are exchanged. Personal income, property and other taxes, social contributions, social benefits, net non-life insurance premiums, non-life insurance claims, government funds transfers under cross-border cooperation, value added tax own resources and gross national income own resources as well as a variety of other transfers, inter alia, transfers between households, are included.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Services

Manufacturing services, repair services, transport, travel, construction, insurance and pension services, financial services, charges for the use of intellectual property n.i.e., telecommunications services, computer services and information services, other business services, personal, cultural and recreational services, government goods and services n.i.e.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Special Drawing Rights

A component of foreign reserves assets created by the International Monetary Fund and which are allocated to its members to supplement existing reserve assets. Special drawing rights are held by central bank or central government and are subject to the effective control of those institutions.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6).

Telecommunications services

The transmission of sound, images or other information by telephone, radio and television cable and broadcasting, satellite, electronic mail etc., business network services, teleconferencing and support services, mobile telecommunications services, Internet backbone services and online access services, including provision of access to the Internet.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Total economy

see Residents

Trade credits and advances

Financial claims arising from the direct extension of credit by the suppliers of goods and services to their customers, and advances for work that is in progress or is yet to be undertaken, in the form of prepayment by customers for goods and services not yet provided. Trade credits and advances arise when payment for goods or services is not made at the same time as the change in ownership of a good or provision of a service.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6).

Transferable deposits

Overnight deposits to be directly transferred on demand for making payments using payment instruments (e.g. credit transfer or direct debit), probably also using a card, e-money and cheques, without any material penalty or restriction.
Deposits that could be used for withdrawing cash and deposits wherefrom the funds can be withdrawn or transferred only via another account of the same customer are not included under the category of transferable deposits.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.

Transport

Carriage of passengers and freight, rentals of vehicles (with crew), postal and courier services, and other supporting services and auxiliary transport services.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Travel

Goods and services purchased by travellers, except international carriage of passengers.
The definition of the concept is consistent with Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Unlisted shares

Shares that are not traded on regulated markets.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and Balance of Payments and International Investment Position Manual (6th edition) of the International Monetary Fund.

Unlisted shares and other equity
see Unlisted shares and Other equity

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