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The principal changes in the assets and liabilities of Latvijas Banka on the 28 February 2019 balance sheet as compared to 31 January 2018 and the reasons for these changes.

In February 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), the expansion of the securities portfolio under the expanded asset purchase programme (APP) was discontinued as of 1 January 2019. It is further planned to reinvest the principal payments from maturing securities purchased under the expanded APP, but within one month, there is a lag between the repayment and reinvestment of the principal amount of securities. As a result, the balance sheet item "Securities held for monetary policy purposes" decreased by 12.9 million euro or 0.2% in February 2019.

In February 2019, deposits of credit institutions shrank by 14.4 million euro or 0.3% as reflected in the balance sheet item "Liabilities to euro area credit institutions related to monetary policy operations denominated in euro".

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.

 

G. Gersons
Deputy Head of Finance Department