Appendix I. Latvia: Fund Relations
(As of July 29, 2009)
I. Membership Status: Joined May 19, 1992; Article VIII.
II. General Resources Account:
|SDR Million||Percent of Quota|
|Fund holdings of currency||662.11||522.17|
|Reserve position in Fund||0.06||0.04|
III. SDR Department:
|SDR Million||Percent of Allocation|
IV. Outstanding Purchases and Loans:
|SDR Million||Percent of Quota|
V. Latest Financial Arrangements:
|Type||Approval Date||Expiration Date||Amount Approved (SDR million)||Amount Drawn (SDR million)|
VI. Projected Obligations to the Fund:
The currency of Latvia is the lats, which was introduced in March 1993 to replace the Latvian ruble. The exchange rate was pegged to the SDR from February 1994 to December 2004, within a ±1 percent band. On January 1, 2005, the lats was repegged to the euro at the rate € 1 = 0.702804 lats, and on April 29, 2005, Latvia entered ERM2, maintaining the previous band width. On July 29, 2009 the lats was equal to US$ 2.03. Latvia’s exchange system is free of restrictions on the making of payments and transfers for current international transactions. Latvia maintains security-related exchange restrictions pursuant to UN Security Council resolutions and EC Council regulations, which have been notified to the Fund under Decision No. 144-(52/51), adopted August 14, 1952. Latvia also maintains a partial deposit freeze on Parex Bank, which gives rise to an exchange restriction. However, as it has been imposed for balance of payments reasons, is temporary and is nondiscriminatory, the board has approved its retention until end-November 2009 or the conclusion of the next Article IV, whichever comes earlier.
Article IV Consultation:
Latvia is on the 24-month consultation cycle.
The 2006 Article IV staff report was issued on September 13, 2006 (Country Report No. 06/353). The last Article IV Board discussion took place on October 4, 2006. The Public Information Notice No. 06/113 was released on October 12, 2006.
A safeguards assessment of the Bank of Latvia was conducted in October 2001 and an update assessment was concluded on July 8, 2009. The update assessment confirmed that the BoL has a relatively strong safeguards framework in place. Recommendations for further improvements were made in the legal structure and independence, financial reporting, and internal control areas.
FSAP Participation and ROSCs:
A joint World Bank-International Monetary Fund mission conducted an assessment of Latvia’s financial sector as part of the Financial Sector Assessment Program (FSAP) during February 14–28, 2001. The Financial Sector Stability Assessment (FSSA) report was discussed at the Board on January 18, 2002, together with the 2001 Article IV staff report (Country Report No. 02/10). An AML/CFT assessment mission took place during March 8–24, 2006, and the report was sent to the Board on May 23, 2007. A joint IMF-World Bank mission conducted an FSAP Update during February 27-March 9, 2007.
|Standard/Code assessed||Issue date|
|Code of Good Practices on Fiscal Transparency||March 29, 2001|
|Code of Good Practices on Transparency in Monetary and Financial||January 2, 2002|
|Basel Core Principles for Effective Banking Supervision||January 2, 2002|
|CPSS Core Principles for Systemically Important Payment Systems||January 2, 2002|
|IOSCO Objectives and Principles of Securities Regulation||January 2, 2002|
|IAIS Core Principles||January 2, 2002|
|OECD Corporate Governance Principles||January 2, 2002|
|Data Module||June 23, 2004|
|FAD||Budget Reforms||Mission||January 2004||Ministry of Finance|
|FAD||Expenditure Policy||Mission||June 2007||Ministry of Finance|
|FAD||Tax Policy||Mission||March 2008||Ministry of Finance|
|FAD||Revenue Administration||Mission||January 2009||Ministry of Finance|
|MCM||Bank Resolution||Mission||January 2009||FCMC, Bank of Latvia|
|FAD||Public Financial Management||Mission||March 2009||Ministry of Finance|
|MCM/LEG||Debt restructuring||Mission||March 2009||Ministry of Finance, FCMC|
|LEG||Legal Aspects of P&A Transactions||Mission||Feb-March 2009||FCMC|
|MCM||Bank Intervention procedures and P&A||Mission||March 2009||FCMC|
|FAD||Public Financial Management||Mission||April-May 2009||Ministry of Finance|
|FAD||Revenue Administration||Mission||July 2009||Ministry of Finance|
|FAD||Cash Management||Mission||July-August 2009||Ministry of Finance|
Mr. David Moore has been appointed Resident Representative effective from June 11, 2009.
Latvia accepted the Fourth Amendment of the Articles of Agreement on February 16, 2001.
Appendix II. Latvia: World Bank Relations
(As of July 29, 2009)
|Title||Products||Provisional Timing of Missions||Expected Delivery Date|
|1. Bank Work Program||Regional Framework Paper||In preparation||Expected in the Fall 2009|
|Social Sector, Public Administration Reform and Emergency Safety Net–Development Policy Loan||In preparation||Board approval expected in September 2009|
|Financial Sector–Development Policy Loan||In preparation||Board approval expected in September 2009|
|Swiss Cohesion Fund TA||Under discussion||Implementation throughout fiscal year 2010|
|2. Fund Work Program||TA on cash management||August 2009||August 2009|
|TA on refocusing the Mortgage and Land Bank||August/September 2009||September 2009|
|Staff Visit (Fiscal)||September 2009||September 2009|