The provisions of the Bank of Latvia in Riga, no. 5 of 17 May 2007 Latvijas Banka's monetary policy instruments Regulations Issued in accordance with the law "on banking" 26. the first paragraph of article i. General questions 1. Latvijas Banka's monetary policy instruments "(hereinafter-the rules) determines the order in which the Bank uses monetary policy instruments and the banks participating in the Latvian Bank monetary operations.
II. Terms used in the rules 2. Bank-a bank registered in the Republic of Latvia, the Republic of Latvia as well as registered member or foreign bank branch, which is money in the Bank account billing lats (hereinafter cash account) and who, if it engages in monetary operations, which require the earnest, participates in the Latvijas Banka's securities settlement system (hereinafter – SSS).
3. the Member State, the European Union or the European economic area.
4. Loan-bank against a pledge according to the deal, which according to the rules between the Bank and the bank of Latvia, issued loan.
5. Loan term – number of days on which the Bank shall issue bank loan.
6. the total amount of the loan, amount of loan, which consists of the following totals: 6.1 the bank allocated money in the account in excess of the daily limit;
6.2. the nominal value of the loans granted to the bank, which the bank receives from the Bank of Latvia, engaging in monetary operations, which require a mortgage, and the interest payable on the loan;
6.3. the amount in dollars that the bank, through the sale of foreign currency, using a mortgage, receives from the Bank of Latvia.
7. Mortgage account in accordance with "Latvijas Banka's securities settlement system" bank to open a securities account in SSS, which lists transactions for pledged securities.
8. financial collateral (hereinafter – the pledge) – all the mortgage securities listed in your account and any funds that result from these securities interest income, deletion or sales charges.
9. sufficient mortgage-a mortgage whose value is greater than the bank's total loan volume, value, and, when a new loan is greater than the bank's new total loan value.
10. The day the excess limit-money account in excess of the limit of the day which is a bank against a pledge to limit the amount of the settlement which during the day, the Bank of Latvia to allow banks the cash account balance.
11. Auto loan-a loan issued by the Bank of Latvia's banks against the pledge until the next business day for cash account balance.
12. the loan-a loan issued by the Bank of Latvia, bank after bank's request against the pledge until the next working day.
13. Value date-the day when payment is the responsibility of the operator specified by the payee account deposit funds provided the transaction amount.
14. in the course of the transaction-the purchase of foreign currency selling rate, which is determined by the Bank of Latvia on the day of the closing of the transaction (T) (at the time of conclusion of the transaction) and which is expressed in dollars per foreign currency unit.
15. transaction spot (spot)-Latvian Bank foreign currency buying or selling rate currency swap auction day, expressed in dollars per foreign currency unit.
16. the end of the transaction rate (forward)-in accordance with these rules set out the foreign exchange rate, which is performed in the reverse repurchase or lats currency swap maturity and which is expressed in dollars per foreign currency unit.
17. deposits in the Bank of Latvia for a definite period of time taken in bank funds in dollars, which are repayable at maturity, the Bank of Latvia repaid the bank with interest.
18. term Deposits – number of days on which the Bank accepts deposits in bank funds.
19. A related company, a company controlled by the bank, or in which the bank owns directly or indirectly more than 50% (fifty percent) of the total voting shares or amount of shares, as well as the bank's parent company and other subsidiaries of the parent companies.
20. the full price-price is obtained, the securities market value divided by its nominal value and multiplied by 100.21. Settlement date – Latvijas Banka's real time gross settlement system (hereinafter – the catfish).
22. the list of securities of the Bank of Latvia and the bank's business to use for collateral securities list.
23. a reverse transaction – a transaction in which the Latvian Bank issues bank loan against pledge, making refinancing operations.
III. Market operations 24. General provisions 24.1. to participate in the Bank of Latvia, monetary operations, the bank shall conclude a contract with the Bank of Latvia on the participation of the Latvian Bank monetary operations "(annex 1).
24.2. The Bank of Latvia and the bank shall exchange the information required to complete the transaction.
24.3. The Bank and the bank of Latvia exchange of information shall be made by electronic means, through the swift system.
15.2. the Bank and the bank for the mutual exchange of information using the auction application, loan request, approval and rejection of the transaction form, which shall be published by the Bank of Latvia Latvijas Banka's internet site (URwww.bank.lv). On the amendment of the form of the report, the Bank of Latvia shall notify the bank not later than 1 (one) month before the date of entry into force of the amendments.
15.2. the Bank shall publish the regular auction schedule and auction the overall results of the Bank of Latvia website (URwww.bank.lv).
24.6. the Bank shall inform the bank about the irregular tendering, in sending messages through the swift system.
15.3. the Bank shall carry out the auction, if received at least one bank.
15.4. the Bank shall participate in the auction with one or more of the applications received by the Bank of Latvia until the beginning of the auction.
15.5. The Bank's auction auction submitted applications are final and irrevocable.
24.10. Auctions in which the Bank shall publish the total amount to be auctioned, one bank auction applications requested amount to the respective auction can not exceed the Bank of Latvia, the overall size of the auction. If the bank auction applications requested amount exceeds the relevant auction by the Bank of Latvia down the total amount of the auction, the Bank of Latvia rejected all the bids submitted by the respective bank's auction applications.
24.11. the Bank rejects the auction application, if it is incomplete or does not correspond to the prescribed form by the Bank of Latvia.
24.12. the Bank rejects the auction application, if the bank does not comply with the auction minimum loan amount, minimum deposit amount or minimum amount.
24.13. the Bank under these provisions calculated and sent the results of the auction are final and irrevocable.
24.14. Where the transaction is performed without the use of a mortgage, the Bank of Latvia his obligations resulting from the execution of the transaction after the bank defaulted on its obligations resulting from the transaction.
24.15. If the bank, engaging in the transaction with the Bank of Latvia, is not under the terms of the commitment taken in 5 (five) working days after the deadline set in the rules, but before the Bank has issued loans to the bank and before the transaction in question is concluded for the provision of financial collateral agreement, the Bank of Latvia does not do business with the bank, and it has ended with 6 (sixth) working days.
25. Main refinancing operations 25.1. Main refinancing operations, the Bank of Latvia organized just like regular auctions, reverse transaction in which banks grant loans against collateral.
25.2. the Bank for each auction determines the minimum lending interest rate, below which the loans are not issued, and the auction total volume.
25.3. The loan maturity is 7 (seven) days.
25.4. The minimum loan amount is $100 000 (one hundred thousand). The loan amount is $10 000 step (ten thousand dollars). The loan interest rate is 0.01% (one hundredth percent).
25.5. to participate in the auction, the bank auctions a day before the beginning of the auction in the Bank of Latvia shall submit one or more auctions.
15.9. the Bank shall keep the bank submitted tender bids for the proposed interest rate descending to auction a minimum interest rate of the loan. Tender bids for the auction by the Bank of Latvia, starting with the highest interest rate offered by the Bank of Latvia in a particular auction total.
25.7. If auction application cannot be satisfied in full, the Bank of Latvia meet in the case of auctions the total balance. If the auction total amount allotted to the balance is less than the minimum amount of the loan, the Bank of Latvia not auctioned balance shall be issued.
25.8. If the submitted tender bids with the same interest rates, which cannot be satisfied in full, the Bank of Latvia meet them in proportion to the loan amount requested in the application. If this is not possible, the Bank of Latvia auction applications meet their filing order, subject to the remaining auction total amount, minimum loan amount and loan volumes.
16.1. the Bank shall calculate the auction results and 60 minutes after the auction start sending information about the auction results for those banks that participated in the auction.
25.10. the Bank shall provide sufficient security to the auction day at. 3. If the auction day at. 15.00 bank pledge is sufficient, the Bank of Latvia issued loans to the bank to which it assigned the auction results.
25.11. If on the date of issue of the loan at. 15.00 bank mortgage is not sufficient, the Bank acts in accordance with paragraph 35.2-35.4 requirements and the issue of the retention of the loan until the bank's pledge is sufficient.
25.12. day of the repayment of the loan, the bank shall repay the loan to the Bank of Latvia, making loans and interest totals for money transfer to the Bank of Latvia.
26. Longer-term refinancing operations 26.1. The Bank of Latvia the longer-term refinancing operations are organized just like regular auctions, reverse transaction in which banks grant loans against collateral.
26.2. the Bank for each auction determines the minimum lending interest rate, below which the loans are not issued and the total amount of the auction.
26.3. Loan term is 91 (ninety-one).
26.4. The minimum loan amount is $100 000 (one hundred thousand). The loan amount is $10 000 step (ten thousand dollars). The loan interest rate is 0.01% (one hundredth percent).
26.5. the Bank auction and settlement shall be carried out according to the main refinancing operations of the regulatory provisions.
27. Term deposits 27.1. The Bank of Latvia at its discretion arrange occasional term deposit auction, which offers banks make Bank deposits in local currency with a fixed interest rate for a certain period of time.
27.2. the Bank for each auction determines the maximum deposit rate at which higher deposits are not accepted, the deposit and the auction total volume.
27.3. the Bank does not give the bank a security deposit to the bank the Bank of Latvia.
27.4. The minimum deposit amount is $100 000 (one hundred thousand). The amount of the deposit is $10 000 step (ten thousand dollars). The deposit interest rate is 0.01% (one hundredth percent).
17.1. the Bank no later than 60 minutes before the auction shall notify banks, proposed the auction time deposit total amount, duration, start date, and end date.
17.1. to participate in the auction, the bank up to the beginning of the auction in the Bank of Latvia shall submit one or more applications for the auction deposit.
17.2. the Bank shall keep the bank auction applications submitted by the required interest in ascending order to auction the maximum deposit interest rate. Tender bids for the auction by the Bank of Latvia, starting with the lowest, the requested deposit interest rate set by the Bank of Latvia auctions within the volume.
17.3. If the auction application cannot be satisfied in full, the Bank of Latvia meet in the case of auctions the total balance. If the auction total amount allotted to the balance is less than the minimum amount of the deposit auction application is not satisfied.
17.3. If the submitted applications for the auction with the same deposit interest rates, which cannot be satisfied in full, the Bank of Latvia meet them in proportion to the amount requested in the application. If this is not possible, the Bank of Latvia auction applications meet their filing order, subject to the remaining auction total amount, minimum deposit amount and the amount of the deposit.
27.10. the Bank shall calculate the auction results and 60 minutes after the auction start sending information about the auction results for those banks that participated in the auction.
27.11. If, in accordance with the information provided by the Bank of Latvia has received approval for bank deposit, bank auctions a day until the end of the day the settlement carried out wire transfers to the Bank of Latvia.
27.12. the Bank's deposits and interest income total includes a bank account in the Bank cash deposit on the day of the repayment of the settlement date.
28. direct securities purchase and sale 28.1. The Bank of Latvia at its discretion arrange occasional direct securities purchase and sale auctions, which buys or sells in local currency denominated debt securities.
28.2. the Bank shall be determined for each auction or sold securities to be purchased, the amount of the maximum purchase price for which the higher Bank Securities do not buy, or minimum sale price below which the Bank of Latvia does not sell securities.
28.3. the Bank each hold individual emission securities purchase or sale auction.
28.4. the direct Securities purchase and sale auctions will only be applied to the full price of the securities.
28.5. Auction price is $0.01 (one penny).
28.6. the Bank no later than 60 minutes before the direct purchase of securities auctions announces the auction time for banks and securities purchase maximum price. The Bank of Latvia no later than 60 minutes before the direct sale of securities auctions Announces banks auction time and sales of securities to the minimum price.
17.8. to participate in the auction, the bank auctions a day before the beginning of the auction in the Bank of Latvia shall submit one or more of the sales of securities or securities purchase applications.
17.9. the Bank shall keep the bank auction applications submitted according to the prices offered in the following order: 28.8.1. If the securities purchased Bank of Latvia – starting with the lowest price to auction the maximum purchase price;
28.8.2. If the securities are sold, the Bank of Latvia – starting with the highest price to the auction minimum purchase price.
46.8. If the securities purchased Bank of Latvia, Latvian Bank auction applications meet, starting with the lowest price tendered Latvian Bank auction total. If the Bank of Latvia worth papers are sold, the Bank of Latvia auction applications meet, starting with the highest price offered by a Latvian Bank auction total.
28.10. If the securities of banks applied for exceeds the Bank of Latvia to request or offer, and there are several applications with the same price, and applications can not satisfy fully the Bank of Latvia meet them in proportion to the amount of the securities specified in the applications, but if this is not possible, the application order.
No 28.11. the Bank shall calculate the auction results and 60 minutes after the auction start sending information about the auction results for those banks that participated in the auction.
No 28.12. If the bank sells the securities to the Bank of Latvia, bank transaction value date until noon. 16.00 transfer securities Latvijas Banka's securities account in SSS. After the receipt of the securities to the Bank of Latvia adjusts money transfer to the bank account of the money in the Bank of Latvia.
28.13. If the bank buys securities from banks, the bank of Latvia made wire transfers to the Bank of Latvia account transaction value date until noon. 16.00. After receipt of the money order, Bank of Latvia even worth the paper concerned the bank's securities account or when the SSS does not participate in the SSS securities of the bank account of the Latvian central depository.
29. non-cash foreign currency purchase and sale of Bank of Latvia 29.1. banks with foreign non-money purchase and sale transactions each day from noon. 9 am to noon. 17:00, but Fridays and pre-holiday days, from noon. 9 am to noon. 16.00.29.2. Foreign currency non-monetary transactions of purchase and sales as foreign currency using only euros.
29.3. the minimum transaction amount is $100 000 (one hundred thousand dollars) or the equivalent amount in foreign currency.
29.4. The Bank of Latvia and the bank shall provide each other their dealers, their phone number, and account number of the correspondent list, as well as the time to inform each other of any changes in the information referred to in this paragraph. This information changes shall become binding on the next working day after receipt of the communication.
29.5. the Bank and the bank for each transaction entered into using the Reuters Dealing system or orally by telephone. The Bank agrees that the Bank may unilaterally choose the technical means to record and save the negotiations. Call records are sufficient for the bank and the Bank of Latvia possible evidence of communication between the dispute and the Court.
29.6. at the close of business, the Bank of Latvia and the bank the following information line: 29.6.1. bank name;
29.6.2. dealer name and surname if the deal is closed by phone;
29.6.3. pledge;
29.6.4. or foreign currency is bought or sold;
29.6.5. the amount of the transaction in foreign currency and in dollars;
29.6.6. transaction rate;
29.6.7. value date lats;
29.6.8. value date of foreign currency.
18.5. the Bank and the bank shall send each other sealed the deal for approval to the conclusion of the transaction settlement date.
29.8. Late selling bank through mortgage 29.8.1. If the pledge is sufficient, the Bank of Latvia after the transaction date amount deposit made lats of the respective bank's cash account Bank valuation date in lats.
29.8.2. If the Bank receives the foreign currency payment approval for foreign exchange payment value date at noon. 15:00, the Bank of Latvia are entitled to meet their transaction in question arise the next working day.
29.8.3. If the mortgage is not sufficient, the Bank acts in accordance with paragraph 35.2-35.4 requirements and retention amount payable in pounds bank cash account in the Bank of Latvia until the bank's pledge is enough, or until the Bank of Latvia from your correspondent receives confirmation that the bank transaction, the transfer of foreign currency amounts.
29.9. Late selling bank without a mortgage, the Bank of Latvia 29.9.1. transaction value date lats after the transaction date the transaction amount, in LCY, of the transfer to the bank account Money Bank when the bank transaction, the amount of foreign currency wire transfers to the Bank of Latvia account, ensuring that the Bank of Latvia, using the swift system, receives approval from the Bank of Latvia, correspondent for foreign currency transfers to the Bank of Latvia account until noon. transaction value date 3 lats.
29.10. Late purchase of bank transaction value date 29.10.1. in foreign currency, the Bank of Latvia after the transaction date of the foreign exchange transaction amount transfer to the bank account specified for the cash only if the bank until noon. transaction value date 3 lats made the required base currency amount transfer to Bank of Latvia.
29.10.2. If the bank value date in lats will make the necessary transfer to the amount of LVL Latvian Bank money account after 5. 15:00, the Bank of Latvia has the right to do business in the amount of foreign currency transfer to the bank account specified on the money on the next business day after the transaction value date lats.
30. Currency swaps 18.7. Bank of Latvia in its discretion organizes regular currency swap auction, in which about buying foreign currency lats from the banks, at the same time entering into a foreign currency future sale or sell foreign currency to banks, while entering into a foreign exchange forward purchase deal.
30.2. the exchange swap tenders as foreign currency using only euros.
30.3. the Bank for each auction set a minimum interest rate of lats, of which the lower Bank of Latvia does not sell the banks, or lats maximum lats interest rates higher for the Bank of Latvia do not buy slats from the banks.
18.9. the Bank no later than 60 minutes before the auction shall notify the banks: 30.4.1. auction;
30.4.2. auction type: R (late purchase of reverse repurchase) or S (late selling with buy-back);
30.4.3. auction number;
30.4.4. transaction date;
30.4.5. auction total volume in dollars;
30.4.6. transaction value date lats and foreign currencies;
30.4.7. the spot transaction;
30.4.8. foreign exchange rate.
5. The minimum amount is $100 000 (one hundred thousand). The amount of the transaction is $10 000 step (ten thousand dollars). Auction interest rate step is 0.01% (one hundredth percent).
30.6. the Bank shall calculate the currency swap of the end of the course in accordance with the following formula: where: FK-deal closing rate, rounded up to six decimal places;
SEE the start of the transaction rate was up to six noap decimal places;
R1-bank offered late interest rate divided by 100 and truncated to four decimal places;
R2-Latvian Bank auction to foreign currency interest rate divided by 100 and truncated to four decimal places;
n-deal date (number of days).
19.1. to participate in the auction, the bank to auction beginning in the Bank of Latvia submitted one or more currency swap applications, indicating the number of auction, requested lat purchase or sales, offered late interest rate, and whether the transaction will be secured by a pledge.
19.1. the Bank shall calculate the auction results and 60 minutes after the auction start sending information about the auction results for those banks that participated in the auction.
19.2. for each transaction concluded the Bank of Latvia and the bank auctions a day send each other a transaction confirmation message.
30.10. Lats repurchase auction, the Bank of Latvia 30.10.1. round the bank submitted tender bids for the lats interest rates offered in decreasing order until the auction minimum of lats interest rates.
30.10.2. the Bank auction applications meet, starting with the higher interest rate offered in the ISR, the Latvian Bank auction total.
30.10.3. If auction application cannot be satisfied in full, the Bank of Latvia meet in the case of auctions the total balance. If the auction total amount allotted to the balance is less than the minimum amount of the transaction, the Bank of Latvia not auctioned balance does not sell.
30.10.4. If the submitted tender bids in the lats interest rates that cannot be satisfied in full, the Bank of Latvia meet them in proportion to the auction transaction, the amount requested in the application. If this is not possible, the Bank of Latvia auction applications meet their filing order, subject to the remaining auction total amount, minimum volume and transaction multiples.
30.11. Lats a reverse repurchase auction 30.11.1. Bank of Latvia organizes a bank auction applications submitted by lats interest rates offered in ascending order to auction the maximum interest rate of lats. Applications that contain the same lats interest rates are sorted in the order of submission of applications.
30.11.2. the Bank auction satisfy the applications, starting with the lowest interest rate offered in the ISR, the auction total.
30.11.3. If auction application cannot be satisfied in full, the Bank of Latvia meet in the case of auctions the total balance. If the auction total amount allotted to the balance is less than the minimum amount of the transaction, the Bank of Latvia not auctioned balances do not buy.
30.11.4. If the submitted tender bids in the lats interest rates that cannot be satisfied in full, the Bank of Latvia meet them in proportion to the auction who participated in the transaction banking. If this is not possible, the Bank of Latvia auction applications meet their filing order, subject to the remaining auction total amount, minimum volume and transaction multiples.
30.12. Settlement by late sales using the pledge of 30.12.1. If the pledge is sufficient, the Bank of Latvia after the transaction date amount deposit made lats against the pledge of the respective bank's cash account Bank valuation date in lats.
30.12.2. If the Bank receives the foreign currency payment approval date of foreign currency valuation, after noon. 15:00, the Bank of Latvia are entitled to meet their transaction in question arise the next working day.
30.12.3. If the mortgage is not sufficient, the Bank acts in accordance with the 35.2-35.4. the conditions and amount of the transfer, the detained late bank cash account in the Bank of Latvia until the bank's pledge is sufficient, or if the Bank receives the confirmation message from your correspondent that the bank transaction, the transfer of foreign currency amounts.
30.13. Settlement by late selling without using the pledge of 30.13.1. After the transaction date Bank transaction value date of the transaction in the lats out amounts in LCY transfer to bank money account Bank when the bank carried out the transaction, the amount of foreign currency transfer to the Bank account money, ensuring that the Bank receives confirmation from the Bank of Latvia, correspondent for foreign currency transfers to the Bank account specified in the cash until noon. transaction value date 3 lats.
30.14. Settlement by late purchase transaction value date 30.14.1. foreign currency transactions the Bank of Latvia adjusts the amount of foreign currency transfer to the bank account specified for the cash only if the bank until noon. transaction value date 3 lats made a deal late transfer to the amount of Bank of Latvia the Latvian Bank accounts.
30.14.2. If the bank value date in lats will make the necessary amount of pounds transfer to Bank of Latvia the Latvian Bank account after 5. 15:00, the Bank of Latvia has the right to do business in the amount of foreign currency transfer to the bank account specified on the money on the next business day after the transaction value date lats.
IV. Standing facilities and day the EXCESS LIMIT 31. Lending facility by the Bank of Latvia 19.3. the bank shall be issued, at the request of the bank against a pledge auto loans and the overnight.
31.2. automatically loan issuance 31.2.1. If the settlement at the end of the day the banks money in the account in the Bank of Latvia has a debit balance, it serves as the bank's request to receive from the Bank of Latvia in automatic debit the amount of the balance of the loan. The Latvian Bank issues bank loan the auto debit balance amount against the mortgage, while reducing the daily limit in excess of the nominal value of the loan amount automatically.
31.2.2. After issuance of loans to the Bank of Latvia sends the automatic issuance of loans to the bank's approval and the day the excess limit Exchange approval, giving it a new day in excess of the limit.
31. the issue of loans to get request 31.3.1. lending, the bank not later than the date of the receipt of a loan you want until noon. submit a loan Bank of Latvia day will request the required loan amount.
31.3.2. minimum amount of the loan request is $100 000 (one hundred thousand).
31.3.3. the Bank provides enough security on the day of submission of the application to the settlement date.
31.3.4. If the security there is sufficient, the Bank of Latvia requests, issuing a demand loan and banking transfer to the requested amount of money in the bank account in the Bank of Latvia, and sends the bank issuing the loan approval.
31.3.5. Latvian Bank rejects loan request, if it is incomplete or does not correspond to the prescribed form by the Bank of Latvia.
31.3.6. Latvian Bank rejects loan request, if the bank does not comply with the minimum amount of the loan.
31.3.7. If the bank's pledge on the day of submission of the application to the settlement by the end of the day is not sufficient, the Bank of Latvia requested the loan be issued.
19.5. automatic loan and loan interest payment and repayment of the loan the day 31.4.1. the bank shall repay the loan to the Bank of Latvia, making loans and interest totals for money transfer to the Bank of Latvia.
31.4.2. After loan and interest total receipts, the Bank of Latvia to increase the bank's daily excess limit auto loans repaid the nominal value and sends the bank a day excess limit Exchange approval, giving it a new day in excess of the limit.
32. The deposit facility 32.1. The Bank of Latvia at the request of the bank accepts deposits for the night.
32.2. to make deposits at the Bank, the bank of Latvia to the settlement by the end of the day even noguldāmo features on bank deposit account in the Bank of Latvia, which serves as the bank's request to make a deposit in the Bank of Latvia on the night.
32.3. the Bank does not provide security to the bank for deposit in the Bank of Latvia.
32.4. The deposit shall expire on the next working day after the transfer of the funds to the noguldām bank deposit account in the Bank of Latvia along with the beginning of a new settlement days.
32.5. The settlement date, the Bank of Latvia at the beginning of all bank deposit account funds and interest credited to the balance of the bank account in the Bank money.
33. daily limit excess 33.1. the Bank shall grant the bank against a pledge of days overrun limit, enabling relevant settlement time of day to use the bank's money account balance for this limit.
33.2. The Bank of Latvia at the bank's request, granted the bank a day excess limit or changing it.
33.3. The Bank required a minimum limit for the exchange of the day the excess amount is $100 000 (one hundred thousand).
20.8. daily limit exceedance increase 33.4.1. to increase the day the excess limit, the bank shall send the Bank a day excess limit change request.
33.4.2. If collateral is sufficient, the Bank of Latvia after the bank's receipt of the increased bank limits and overshoot the day sends the bank a day excess limit Exchange approval. The day the excess limit Exchange confirmation the Bank of Latvia specifies new date limit excess.
33.4.3. If the mortgage is not sufficient, the Bank of Latvia rejects the request submitted by the bank, sending daily excess limit Exchange rejection.
33.5. daily limit excess reduction 33.5.1. to reduce daily excess limit, the bank shall send the Bank a day excess limit change request.
33.5.2. If the bank requested the reduced daily excess limit is sufficient for the bank used the money of account surplus, the Bank of Latvia to reduce the excess limit day and send the bank a day excess limit Exchange approval. The day the excess limit Exchange confirmation the Bank of Latvia specifies new date limit excess.
33.5.3. If the bank requested the reduced daily excess limit is not sufficient the bank used the money of account surplus, the Bank of Latvia and the bank rejects the request sends the bank a day excess limit Exchange rejection.
V. financial pledge 34. financial collateral agreement and action with a financial pledge of 34.1. The Bank of Latvia mortgage management uses the pool method, i.e., the Bank of Latvia all transactions for assets pledged by the bank's securities combine into one mortgage, which is used as security for a bank loan of this amount to the total, and every loan.
21.3. the Bank provides Mortgage Bank, to ensure that the obligations arising from the bank carrying out transactions with the Bank of Latvia.
21.3. the Bank provides Mortgage Bank, the bank shall transfer the securities collateral account. Securities has taken the pledge to the moment when it counted in the mortgage account.
21.4. the Bank is entitled to use securities as a pledge, which is included in the list of securities and which is not a bank or its affiliated company issued securities.
34.5. If any of the mortgage securities listed in the account, the bank is not entitled to use as collateral, the value of the securities is treated as 0 (zero) and the Bank of Latvia does not use it as security for a bank loan, the total amount. In this case, the bank is obliged to list the relevant securities securities transfer from the pledge account 5 (five) working days from the date of the bank it is no longer entitled to use as collateral.
21.5. the Bank, assuming the banks pledge securities transferred, taking them in his possession. Pledged securities release entitled the Bank of Latvia.
21.6. any bank securities pledge account ieķīlājum, carried out in accordance with the Bank of Latvia and the bank according to the provisions of the transaction concluded and which contains the information referred to in paragraph 34.10 is separate between the Bank of Latvia and the bank concluded the financial pledge agreement, which apply this rule and between the Bank and the bank of Latvia concluded contract "for membership of Latvian Bank monetary operations".
21.6. on the basis of the conclusion of the contract, the financial pledge separately the mortgage securities contained in is not exactly considered security between the bank and the Bank of Latvia concluded deal, but everything on the basis of concluded contracts of the financial mortgage mortgage securities in the set while serving as collateral and the bank the total amount of the loan and the bank issued loans to everyone.
21.7. The Bank of Latvia adjusts security assessment in accordance with paragraph 37, setting the value at which the Bank of Latvia has the right to dispose of or pledge its share according to the procedures laid down in the rules.
34.10. If the bank requires the use of the transaction, the Bank of Latvia provides the bank with the following information for each between the Bank of Latvia and the bank concluded the transaction and accordingly closed the financial pledge agreement: 34.10.1. the nature of the transaction;
34.10.2. the amount of the transaction and interest;
34.10.3. the pledge (security identifier);
34.10.4. mortgage amount;
34.10.5. provision of security (ieķīlājum).
34.11. the Bank issues bank new loan only if the bank's pledge is sufficient.
34.12. the Bank is entitled to reduce the mortgage securities in the account, if the remaining pledge is sufficient. The Bank of Latvia accepts the reduction of the amount of the securities collateral account, making the transfer of securities.
34.13. After executing an event, i.e., the date of the bank according to the deal, concluded in accordance with the rules, to be repaid to the Bank of Latvia issued the loan, but the bank did not drawback, the Bank of Latvia is entitled freely to dispose of their choice from any mortgage securities in favor of himself or a third party to the extent that corresponds to the bank the amount of outstanding commitments on reducing the amount received or completely deleting bank related transactions resulting from obligations to the Bank.
34.14. If the mortgage squeeze means obtained is not sufficient to cover the bank's volume of outstanding commitments, the Bank of Latvia has the right to make deductions from any bank funds to a bank account in the Bank of Latvia.
35. additional collateral request every day at 21.8.. 10.00 as well each time before a new loan to the issuing Bank checks the bank pledged securities, securities compliance list and assess the adequacy of security.
35.2. If the mortgage is not sufficient, the Bank of Latvia has the right without the consent of the bank to reduce the bank's daily excess limit, if it is not fully used, to the extent that until pledge is sufficient. Banking day the excess limit, the Bank of Latvia sends the bank a day excess limit change notification.
35.3. If the mortgage is not sufficient and the day the excess limit reduction is not possible, the Bank shall send the bank additional collateral request.
35.4. the additional Get request, the bank's securities is obliged without delay to the same working day until the end of the day the settlement to transfer additional securities account or securities also cut its daily limit excess.
22.1. If the mortgage is not sufficient, the Bank is entitled not to perform the pledge of securities listed in the account interest income or the payment of the securities related deletion payments until the banks pledge becomes sufficient.
Vi. 36. Bonds to be used for the maintenance of the list Securities 36.1. every business day, the Bank of Latvia and the Latvian Bank internet site (www.bank.lv) publish it the list of securities it issued loans to banks as collateral. Securities list indicates each full price of securities and valuation haircuts applied to it.
36.2. the Bank shall include a list of the securities the securities that meet the following requirements: the principal and 36.2.1. interest income may not turn into a negative payment flows;
36.2.2. they released issuers incorporated in the Member States or international institutions;
36.2.3. they are registered in the Latvian central depository;
36.2.4. they are denominated in dollars;
36.2.5. they are publicly traded;
36.2.6. their credit rating or the issuer of the securities rating long-term liabilities in lats or foreign currency shall be equal to at least one of the following ratings or higher of it: A-(Fitch Rating), A3 (Moody's Investors Service), A-(Standard Poor's &).
36.3. Securities is stated in paragraph 38 hedging requirements.
37. the security assessment 37.1. The Bank of Latvia adjusts securities in listed securities, through previous working day those securities quotes.
37.2. the Bank shall determine the value of the securities, on the basis of the following principles: each 37.2.1. Securities included in the list of the securities, the Bank of Latvia specifies a single securities market, used for the price of the securities. If these securities are traded on several markets, the only one of the securities of the market is used as a price source.
37.2.2. each securities market, used as a price source, the Bank of Latvia determines the typical price of the securities used in the market value of the securities;
37.2.3. the value of securities is determined using the previous day's typical securities price;
37.2.4. If the previous day's typical price is not available, the Bank of Latvia uses the last 5 (five) working days from the last quoted market price;
37.2.5. If the Security's market price is not available for the last 5 (five) working days, the Bank of Latvia the market value of securities is determined using the previous working day for the security of the interest rate curve;
37.2.6. the value of debt securities include accrued interest income.
38. Risk control and valuation haircuts 38.1. the Bank applies valuation haircuts, which are used as collateral for the mortgage. The Bank of Latvia, in assessing the mortgage securities contained in value, reducing the market value of the securities at a specified percentage (valuation haircuts).
38.2. the valuation haircuts applied to Securities depends on the security of the remaining repayment period interest income, liquidity and payment structures. All the pledged securities divided into two liquidity categories, taking into account the classification of the issuer of securities and asset class.
23.8. Category I includes Central Government, local and regional authorities and the central bank debt securities.
23.9. Category II includes the supervision of credit institutions, other companies and asset-backed debt securities.
38.5. Securities valuation haircuts are determined in annex 2.
24.0. Variable rate interest income securities, which interest rate period of not more than one (1) year, the valuation haircuts that match the fixed rate interest income securities that the remaining repayment period shall not exceed one (1) year.
36.6. Variable rate interest income securities, which interest rate period is longer than one (1) year, the valuation haircuts are applied, corresponding to the same category of fixed rate coupon securities with the same remaining repayment period.
24.1. If there is more than one security interest income payment method takes into account only the remaining interest income payments. For example, the majority of securities valuation haircuts that comply with securities with the same category, the remaining repayment period and one of the Bill's remaining interest income payment modes.
Closing questions 39. Be declared unenforceable by the Bank of Latvia Council of 16 November 2006 decision No 131/5 "for" Latvijas Banka's monetary policy instruments "approval of the provisions" (Latvian journal, 2006, Nr. 192).
40. the rules shall enter into force on 1 June 2007.
The Bank of Latvia President i. Rimšēvič in annex 1 the Bank of Latvia on 17 May 2007, regulations No 5 in ____. the year ____. ____ _____ contract No ___ ___ ___ On membership of Latvian Bank monetary operations, the Bank of Latvia, which operate in accordance with the law on Latvijas Banka (hereinafter-the Bank of Latvia), ___ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ person, on the one hand, and the (position, name, surname) _____ _____ _____ _____ _____ _____ _____ _____ (hereinafter – the bank), acting in accordance with the statutes, (bank name) ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ (position, name, surname), on the other hand, both parties referred to, without the false, error and coercion, freely expressing the will of the parties the conclusion of such agreements.
1. Subject of the contract 1.1. This agreement lays down the arrangements for monetary operations between the bank and the Bank of Latvia, t.sk. the conclusion of the agreement on the financial collateral arrangements, the financial pledge and action with a financial pledge.
1.2. The execution of this contract and conducting monetary operations, the Parties shall act in accordance with this agreement and "Latvijas Banka's monetary policy instruments regulations" (hereinafter-the rules).
2. The right to supplement the Treaty and rules 2.1 the parties agree that the Bank shall have the right at its own discretion unilaterally to make amendments to the rules.
2.2. amendments to the rules of the Bank shall notify the bank in writing not later than 5 (five) working days before the entry into force of this amendment.
2.3. If the bank does not agree to the terms of the Bank of Latvia for amending, the bank may unilaterally terminate the contract in accordance with paragraph 7.6.
3. use the general requirement of LVL 3.1 the parties agree that all operations related to monetary payments, excluding foreign currency payments in foreign currency purchase and sale transactions and currency swaps, are made in dollars.
4. General requirement for securities 4.1 the parties agree that the loan bank is provided only if it is fully equipped with a financial pledge.
4.2. the parties undertake to comply with the conditions of the financial rules of the mortgage contract, claims financial pledge and action with a financial pledge.
5. liability of the parties 5.1. If the bank does not ensure the adequacy of securities or funds or securities transfer rules of conduct within the time limits, the Bank of Latvia has the right to request, and the bank is obliged to pay a contractual penalty to the Bank of Latvia, which is about equal to the transfer value of delayed in dollars or foreign currency, which is converted into local currency at the Bank of Latvia related foreign exchange payment value date, or delayed pledge amount multiplied by the interest rate of the loan by the Bank of Latvia on the value date plus 2.5% (2.5 percent), the results obtained, multiplied by 7/360.5.2. If the bank is violating the rules relating to the mortgage securities contained in the use of the Bank of Latvia has the right to request, and the bank is obliged to pay a contractual penalty to the Bank of Latvia, which is about equal to the mortgage securities contained in that the bank is not entitled to use as collateral, the value multiplied by the interest rate of the loan by the Bank of Latvia for the night, plus 2.5% (2.5 percent), the results obtained, multiplied by 1/360.5.3. If the bank is 12 (twelve) months during the 3 (three) or more times, breaking the same rules of monetary operations, the Bank of Latvia has the right to a period of up to 3 (three) months to deny the bank to participate in the monetary operations. The following barring Bank of Latvia shall inform the bank in writing, specifying the date to which the bank is not entitled to participate in the monetary operations.
5.4. The Bank of Latvia on the estimated contractual penalties shall inform the bank via swift system. The Bank is obliged to pay a contractual penalty calculated no later than the next day after the settlement by the end of this paragraph the notification from the Bank of Latvia.
5.5. If the Bank does not provide money or securities transfer rules of conduct within the time limits, the bank shall have the right to demand and the Bank of Latvia is obliged to pay a contractual penalty to the bank that the amount equal to the transfer value of delayed in dollars or foreign currency, which is converted into local currency at the Bank of Latvia the relevant foreign exchange rate at the date of the payment value, multiplied by the interest rate of the loan by the Bank of Latvia on the value date results multiplied by the number of days delay and 1/360.5.6. Penalty fee does not exempt the parties from the performance of a contract.
6. Force majeure 6.1. the parties are released from liability for all or part of the obligations provided for in the contract, if it had occurred in a force majeure. Insuperable power are considered as natural disasters, fires, war, armed conflicts, State power and administration, as well as the institutions and bodies of the local bans, legislative change, riots and strikes. The party claiming force majeure, is exempted from responsibility for its non-performance only and only if that party has not been able to prevent these conditions.
6.2. A party which, in accordance with the provisions of point 6.1 of the discharge originates the impossibility, there is an obligation on it and possible life to inform the other party in writing not later than 5 (five) calendar days from the occurrence of force majeure. No information or timely information prevent the party which has not informed the other party or it is not done in time, refer to any of the said force majeure circumstance as the basis for exemption of liability of total or partial non-execution. Of force majeure being demonstrated by the competent national authority issuing the certificate.
7. the entry into force of the agreement and termination 7.1. any amendment to the agreement obtain legal force only if they are made in writing and approved with the signature of both parties.
7.2. All disputes the parties negotiating towards. If no agreement is reached, the dispute shall examine the laws of the Republic of Latvia in accordance with the procedure laid down by the courts of the Republic of Latvia.
7.3. the contract shall enter into force on the date of entry into force of the rules. The agreement is concluded for an indefinite period.
7.4. the contract may be terminated by the parties in writing.
7.5. the Bank shall have the right at its discretion unilaterally to terminate the contract, the bank written notice of at least 7 (seven) days in advance.
7.6. The Bank shall have the right at its discretion unilaterally to terminate this agreement on condition that the bank passed the all the obligations arising from this agreement against the Latvian Bank performance, of its intention to terminate the contract in writing informing the Bank of Latvia at least 7 (seven) days in advance.
7.7. the contract is drawn up to __ (__ ____) page 2 (two) copies, one for each party.
8. Legal addresses of the parties 8.1. The Bank of Latvia: k. Valdemāra Street 2, Riga, LV-1050 phone: 702 2300, fax 702 2420 8.2. Bank: _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ the signatures of the parties: the Bank of Latvia (signature) (signature) (name) (name) (title) (position) Z.v.
Z.v.
(date)
(date)
The Bank of Latvia President i. Rimšēvič in annex 2 of the Bank of Latvia on 17 May 2007, regulations No 5 securities valuation haircuts (%)
The remaining repayment period (in years) the liquidity category I category II category securities with fixed-rate interest income securities without interest income securities with fixed-rate interest income securities without interest income 1 0.5 0.5 1.5 0-1.5 1.5 1.5 1 3 3.0 3.0 3.0 4.5 5.0 2.5 3-5 5-7 3.0 3.5 4.0 4.5 5.5 6.0 6.5 8.0 7-10 5.5 8.5 9.0 9.3 > 10 Bank of Latvia President i. Rimšēvič in
