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"credit Write-Offs And Securities Reporting Revaluation Adjustment" Provisions Of The Preparation

Original Language Title: "Kredītu norakstīšanas un vērtspapīru pārvērtēšanas korekciju pārskata" sagatavošanas noteikumi

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The Bank of Latvia Regulation No 44 in Riga 2009 November 5 "Credit write-offs and securities reporting revaluation adjustment" provisions issued in the preparation in accordance with the law "on banking" article 39 1. determines the order in which banks and foreign bank branches (hereinafter – the bank) shall prepare and submit to the Bank of Latvia "Credit write-offs and securities revaluation adjustment report" (hereinafter the report).
2. The terms used in the following terms: 2.1 position-adjusted monetary financial institutions a monthly balance sheet position, subject to credit write-off or securities revaluation adjustment;
2.2. credit write-off adjustment – adjustable positions change incurred credit fully or partially written off from the balance sheet;
2.3. the countervalue – adjustment of the entry according to the double entry principle;
2.4. the revaluation adjustment of securities-adjustable positions change, due to a change in the market price of the securities or the premium or discount damping;
2.5. other term usage complies with the provisions of the Bank of Latvia "monetary financial institution balance reporting month".
3. the aim is to get the monetary and financial statistics analysis, as well as the balance of payments and financial account information required for the preparation of the monetary financial institutions excluding the Bank of Latvia (hereinafter MF), monthly balance-sheet positions of individual change that is not due to financial transactions.
4. the report (attachment) "securities revaluation adjustment" by the bank, of which the carrying amount of change reaches or exceeds 90% of the total value of bank securities accounting change.
5. The Bank of Latvia the provisions referred to in paragraph 4, inform the bank about the obligation to submit the revised section "securities revaluation adjustment" not later than four months before the submission deadline.
6. the report includes adjustments relating to the reference month credit write-offs and revaluations of securities.
7. The report observed score distribution for residents and non-residents. For non-residents report followed separation of euro area countries rezidento and the rest abroad.
8. The report separately the adjustments in national currency, euro, us dollars and other foreign currencies.
9. The adjustment report presented in lats.
10. Foreign currency loans and purchased securities position adjustments related to foreign exchange rate movements, the report does not show.
11. Credit amortization adjustments relating to MFI monthly balance sheet items "loans" and "requirements to MFIs excluding the Bank of Latvia" (hereinafter – the credit lines). Separately, credit adjustments of the scrapped syndicated loans.
12. Securities revaluation adjustment covers the monthly MFI balance sheet position "debt securities and other fixed income securities", "shares, investment certificates and other securities with fixed income", "participation in the share capital of the associated undertaking" and "investments in share capital of the company" (hereinafter – the securities positions).
13. credit write-offs and securities Revaluation adjustments according to the report presented to the countervalue position "capital and reserves" or "accruals and liabilities debts".
14. the Bank's credit write-off adjustment report displays when the credit (or part thereof) are written off from the balance sheet.
15. Credit line loan amortization adjustments shown with a minus sign and the value that the loan is written off from the balance sheet. If credit has been 100% savings, according to the correction of the countervalue to the minus sign is presented under the heading "provisions for debts and obligations". If the loan is not provisioned 100%, under the heading "provisions for debts and obligations" with the minus sign shows the adjustment of the countervalue corresponding to this credit, the savings part of the set up, and under the heading "capital and reserves"-the adjustment countervalue corresponding to credit the savings created not part.
16. Securities revaluation adjustment is calculated as the difference between the balance of securities statement the month and at the end of the preceding month, less the reference month purchased the securities value and the difference in the value of securities forfeited. The Bank calculates the adjustment for those securities that are: 16.1. its property was both the end of the previous month, and by the end of the reference month;
16.2. the property was at the end of the previous month and that alienates the reference month;
16.3. purchased in the reference month;
16.4. acquired and disposed of the reference month.
17. If the book value of securities increased securities positions in securities revaluation adjustment is a positive number, but if the carrying amount of the securities declined, a negative number, which is presented in the report with a minus sign. Appropriate adjustments of the countervalue obtained by summing all the securities included in the report Revaluation adjustments, presented under the heading "capital and reserves".
18. Adjustment securities in foreign currency must first be calculated in the relevant foreign currency in accordance with the provisions of paragraph 16 of the requirements and then converted in local currency at the foreign exchange report monthly average rate, calculated using the Bank of Latvia, the foreign exchange rate for each day of the reference month.
19. The report writing loans and securities revaluation adjustment displays the maturity breakdown: credit lines – after the financial instrument transactions agreed at the beginning of the end of the transaction or the notice, but the position "debt securities and other fixed income securities" – after the emission point in a certain maturity. Each term includes a group of its longer term, such as "the term to 1 year": due in one year, but the term "1-2" – the term of two years.
20. the Bank shall submit the report to the Bank of Latvia within six working days after the end of the reference month in electronic form the Bank of Latvia.
21. Be declared unenforceable by the Bank of Latvia Council of 15 January 2004, decision No 109/6 "for the" loan "write-offs and securities reporting revaluation adjustment" preparatory "approval of the provisions" (Latvian journal, 2004, No. 12).

22. the regulations shall enter into force on May 1, 2010.
The President of the Bank of Latvia (I). Rimšēvič attachment of Bank of Latvia of 5 November 2009. Regulations No 44, the President of the Bank of Latvia is Rimšēvič.