lv

Riga, 13 May 2010

Taking into account the monetary policy decisions taken at the previous meeting of the Bank of Latvia Council, the further stabilization of the economic situation, the recent reduction in money market interest rates, and the high liquidity or free financial resources available to banks, Bank of Latvia Council today decided to leave unchanged the interest rates set by the Bank of Latvia and the mandatory reserve requirement in place for banks.

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 24.03.2010. 0.5
Bank of Latvia 7-day deposit facility rate 24.03.2010. 1.0


The Bank of Latvia made the decision to annul two regulatory documents in the sphere of payment services - "The Regulation for Loan Transfer" and "Recommendations for Transactions with the Electronic Means of Payment” as of 1 June 2010, since the issues addressed therein are regulated by the Law on Payment Services. The law regulates the relationship between the service providers, including banks, and the users of payment services, the customers’ rights to information, information and regulations that must be provided in customer contracts as well as the order and deadlines for executing the payments.

In view of the Payment Services law taking effect and annulment of "The Regulation for Loan Transfer" the Bank of Latvia Council adopted a new edition of the "Regulation for IBAN Use" (in effect as of 01.06.2010.), excluding provisions regarding the service provider relationships with customers regulated by the Payment Services law. The amendments to the "Regulation for IBAN Use" do not affect the IBAN use in Latvia.
IBAN is an international account number standard in use in Latvia since 2005 as the only customer account number in banks. Since 2005, the recipient account number for domestic payments must be indicated only as IBAN.

The Bank of Latvia Council adopted amendments to the "Regulation for buying and selling foreign cash currencies" (in effect as of 01.06.2010.). The deadlines for the decisions of the licensing committee have been changed in addition to making some editorial changes. In compliance with the Law "On the Bank of Latvia", the Bank of Latvia licenses enterprises (except credit institutions) for buying and selling foreign currencies as their business activity. The Bank of Latvia likewise sets requirements for enterprises for buying and selling cash foreign currencies. Currently such licences have been granted to 67 enterprises, and 133 foreign exchange bureaus are operating.