Bank of Latvia's assets soar

  • 2007-01-17
  • From wire reports
RIGA - The Bank of Latvia's assets grew 54.7 percent or 914.98 million lats last year, reaching 2.59 billion lats (3.68 billion euros) at the end of December, according to the balance sheet of the Latvian central bank.

In December last year, the bank's assets increased by 0.2 percent or 5.38 million lats.
Vilnis Purvins, head of the monetary policy section under the Macroeconomic Analysis Department of the Bank of Latvia, said that the central bank's foreign assets in December 2006 were up 0.2 percent or 5.11 million lats to 2.55 billion lats, growing value of derived financial instruments in lats.

The bank's foreign liabilities in December 2006 rose by 3.851 million lats or 2.9 percent to 138.66 million lats, as the European Commission deposits with the Bank of Latvia in foreign currency increased, but the European Commission deposits with the Bank of Latvia in lats decreased.
The Bank of Latvia domestic assets stood at 34.87 million lats at the end of December last year, up 0.8 percent or 0.27 million lats from the month before.

Domestic liabilities in December 2006 reduced by 43.78 million lats or 3.3 percent to 1.27 billion lats, as deposits by the government decreased by 227.2 million lats, deposits by credit institutions with the central bank increased by 180.2 million lats, and deposits by other financial institutions rose by 2.9 million lats.

Mainly due to the above changes, the amount of lats in circulation increased by 4.9 percent or 50.01 million lats in December last year, reaching 1.27 billion lats on Dec. 31, 2006, the central bank's representative said.
Purvins explained that the Bank of Latvia's capital and reserves last December declined by 4.71 million lats to 103.459 million lats due to changes of the foreign currency re-evaluation account resulting from fluctuations of the market value of securities and foreign exchange rates.