lv

Riga, 15 July 2010

In order to motivate banks to allocate their resources for the development of the economy, the Bank of Latvia Council decided to reduce the Bank of Latvia 7-day deposit facility rate from 1% to 0.5%, and to decrease the overnight deposit facility rate from 0.5% to 0.375%.

The Report of the Governor of the Bank of Latvia, Ilmārs Rimšēvičs, at today’s press conference will be available in the news section of the Bank of Latvia’s home page www.bank.lv.

The interest rates set by the Bank of Latvia are as follows:

In effect as of % per annum
Bank of Latvia refinancing rate 24.03.2010. 3.5
Bank of Latvia marginal lending facility rate to banks that have used the facility no more than 5 working days within the previous 30 day period 09.12.2008. 7.5
Bank of Latvia marginal lending facility rate to banks that have used the facility no more than 10 working days within the previous 30 day period 09.12.2008. 15.0
Bank of Latvia marginal lending facility rate to banks that have used the facility more than 10 working days within the previous 30 day period 09.12.2008. 30.0
Bank of Latvia overnight deposit facility rate 24.07.2010. 0.375
Bank of Latvia 7-day deposit facility rate 24.07.2010. 0.5


The deposit facilities with the Bank of Latvia are funds in lats that the Bank of Latvia receives from a bank for a definite period and repays to it with interest upon maturity.By changing the facility rate, the Bank of Latvia increases or decreases the attractiveness of the deposit facility.