lv

Riga, 15 January 2009

The Bank of Latvia Council today resolved to reduce the marginal deposit facility rate with the Bank of Latvia from 3.00% to 2.00%. The other central bank interest rates, refinancing and marginal lending facility, remain unchanged.

Taking into account the rapid slowdown in lending and downturn of the economy, the Bank of Latvia has taken several steps to reduce the reserve requirement, thereby releasing a substantial amount of resources available to commercial banks for lending to the economy. The inflow of these resources into the economy has been taking place too slowly, however. With this in view, the marginal deposit facility rate has been reduced to stimulate the lats money market and promote placement of the financial resources available to banks in the national economy.

  Effective as of Interest rate per year
Bank of Latvia refinancing rate 18.05.2007. 6.000
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. 7.500
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. 15.000
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. 30.000
Marginal deposit facility rate with the Bank of Latvia 24.01.2009. 2.000


The Bank of Latvia Council approved a new edition of the "Regulation for the Calculation and Fulfilment of Required Reserve Ratios for Banks" (to take effect on 24 January 2009). In view of the fact that as of 9 December 2008 different marginal lending facility rates are applied depending on the frequency with which the facility is used, the new edition specifies that to calculate the fee for failure to meet the required reserve ratio the lowest of the rates set by the Bank of Latvia for marginal lending facility.

The Bank of Latvia Council approved new editions of the "Regulation for the Credit Register", "Technical Regulation for the Credit Register", and "Regulation for the Amount and Payment Procedure for the Credit Register Participant’s Fees" (all to take effect on 1 February 2009). The new versions of these Regulations set out additional elements in the procedure whereby participants provide information to the Register, provide for disseminating aggregated statistics to the participants and the Financial and Capital Market Commission, and specify the procedure for paying the fees participants must pay for using the Register.

The Bank of Latvia Council approved a new edition for the "Regulation for the Reproduction of Lats Banknotes" (to take effect on 21 January 2009). The reproduction of the lats banknote, e.g. for advertising or publicity purposes, must comply with one of the criteria set out in the Regulation; the list of criteria has been expanded in the new edition.

The above Regulations will be available to all interested parties in the Legal section of the Bank of Latvia’s Internet home page and will also be published in the newspaper "Latvijas Vestnesis".