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The principal changes in the assets and liabilities of Latvijas Banka on the 31 May 2019 balance sheet as compared to 30 April 2019 and the reasons for these changes.

In May 2019, loans granted as a result of targeted longer-term refinancing operations remained unchanged.

Following the decisions of the Governing Council of the European Central Bank (ECB), security purchases under the expanded asset purchase programme (APP) were discontinued as of 1 January 2019. It is further planned to reinvest the principal payments from maturing securities purchased under the expanded APP. As a result, the balance sheet item "Securities held for monetary policy purposes" grew by 1.6 million euro or 0% in May 2019.

In May 2019, deposits of credit institutions decreased by 211.2 million euro or 4.8% as reflected in the balance sheet item "Liabilities to euro area credit institutions related to monetary policy operations denominated in euro".

With the value of concluded repurchase agreements growing, the balance sheet item "Liabilities to non-euro area residents denominated in foreign currency" increased by 32.7 million euro or 2.6%.

Mainly as a result of cross-border payments received and made by credit institutions and Latvijas Banka, a decrease was recorded in liabilities to the ECB reported under the balance sheet item "Liabilities related to TARGET2 and national central bank correspondent accounts (net)", reflecting the settlement result in the TARGET2 settlement system.

J. Caune
Head of Finance Department