Published: 27.04.2015

The Council of Latvijas Banka has approved the Annual Report of Latvijas Banka for 2014. Apart from the financial statements and auditors' report, it gives an overview of the economic environment and developments in Latvia and the euro area and provides information on the operation of the national central bank and the accomplishments in the areas of its responsibility: participation in the formulation and implementation of the Eurosystem's monetary policy; economic analysis and research; management of foreign reserves and other financial investments; ensuring cash circulation; promoting smooth operation of payment and settlement systems; compilation and publishing of statistics; operation of the Credit Register, etc.

For Latvijas Banka, year 2014, the first year following the euro changeover, was characterised by active participation in the work of the Eurosystem. At the same time, after Latvia became a member of the euro area, the national central bank continued to pursue the tasks essential for the functioning of the economy and its blood circulation – the financial system.

With Latvijas Banka joining the Eurosystem and participating in the decision-making related to the single monetary policy of the euro area, several functions of the national central bank expanded or changed notably. Latvijas Banka began using the monetary policy instruments of the Eurosystem, with the financial system of Latvia benefiting from the access to significant amounts of financing. In 2014, the Eurosystem launched a programme of targeted longer-term refinancing operations; in 2015 it was supplemented by an expanded asset purchase programme.

Year 2014 saw the first benefits of the euro changeover, inter alia, more convenient cash circulation and higher economic and geopolitical security, living without concern about potential devaluation of the national currency. Despite uncertainty caused by the geopolitical situation, the euro helped to keep the rate of economic growth in positive territory.

As reported before, the profit earned by Latvijas Banka in 2014 was 36.8 million euro. In accordance with the Law on Latvijas Banka, 65% or 23.9 million euro of Latvijas Banka's profit for 2014 will be appropriated to the state budget; the rest of the profit will be transferred to the reserve capital of Latvijas Banka.

Pursuant to the Law on Latvijas Banka, Latvijas Banka's annual financial statements are audited by independent external auditors recommended by the Governing Council of the European Central Bank and approved by the Council of the European Union. Latvijas Banka has received a positive auditors' opinion on its financial statements for 2014 from the auditing company SIA Ernst & Young Baltic.

The Annual Report of Latvijas Banka for 2014 will be available at Financial statements of Latvijas Banka for 2014 are available as a separate document on the web site of Latvijas Banka.