The principal changes in the assets and liabilities of Latvijas Banka on the 31 December 2018 balance sheet as compared to 30 November 2018 and the reasons for these changes.

In December 2018, loans granted as a result of the main refinancing operations by Latvijas Banka decreased by 15.7 million euro, while those granted as a result of targeted longer-term refinancing operations remained unchanged.

Following the decisions of the Governing Council of the European Central Bank (ECB) on the expanded asset purchase programme (APP), the balance sheet item "Securities held for monetary policy purposes" grew by 18.6 million euro or 0.3% in December 2018, mostly on account of the purchase of securities.

In December 2018, deposits of credit institutions expanded by 714.3 million euro or 16.5% as reflected in the balance sheet item "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, 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.

J. Caune
Head of Finance Department