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Created on 25.05.2012

In view of the relatively rapid economic growth observed in the last quarters and the gradual improvement in lending, against the background of moderate medium-term risks to price stability, the Council of the Bank of Latvia has assessed the current monetary policy conditions as consistent with the economic situation and today resolved to leave unchanged the interest rates and the minimum reserve ratio for the banking sector set by the Bank of Latvia.

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

24.03.2012.

5.0

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

 

24.03.2012.

10.0

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

 

24.03.2012.

15.0

Bank of Latvia overnight deposit facility rate

 

24.11.2010.

0.25

Bank of Latvia 7-day deposit facility rate  

24.11.2010.

0.375

The Bank of Latvia Council approved amendments to the "Procedure for Participation in Lats Cash Transactions at the Bank of Latvia" which will take effect on 01.06.2012. and which provide for an improved procedure for cash currency transactions in case a credit institution has been declared insolvent or a bankruptcy procedure has been instigated against it as well as an improved mutual cooperation and communication between the Bank of Latvia and credit institutions or their authorized traders in both day-to-day and emergency cash currency transactions.

The Bank of Latvia Council approved amendments in the "Regulation for Purchasing and Selling Foreign Cash Currencies" that will take effect on 01.06.2012, aiming to improve the licensing process and control. The regulation provides for more exact norms for market participant that are legal persons registered abroad. More strict requirements are set for market participants for obtaining a new licence if any licence has been annulled for infractions, i.e. the term or refusal of a new licence has been prolonged from six months to one year. From now on, at the place of purchasing nd selling foreign currencies VAT reimbursement will be allowed for persons who are registered in countries outside the EU.

The Bank of Latvia Council approved amendments to "The Recommendations for an Internal Control System for Preventing the Legalization of Financial Means Obtained through Criminal Activity and Financing of Terrorism for Capital Ventures That Have Received a Bank of Latvia Licence" that will take effect on 01.06.2012. Since a new law on Personal Identity Documents has taken effect that provides for a new form of personal identity document, a personal identification certificate or card, the recommendations have been supplemented with information on the new personal identity documents. The signs of suspicious transactions have been updated.