OREANDA-NEWS. July 20, 2010. In order to motivate banks to allocate their resources for the development of the economy, the Bank of Latvia Council decided to reduce the Bank of Latvia 7-day deposit facility rate from 1% to 0.5%, and to decrease the overnight deposit facility rate from 0.5% to 0.375%, reported the press-centre of Bank of Latvia.

The Report of the Governor of the Bank of Latvia, Ilmars Rimsevics, at today’s press conference will be available in the news section of the Bank of Latvia’s home page www.bank.lv.

The deposit facilities with the Bank of Latvia are funds in lats that the Bank of Latvia receives from a bank for a definite period and repays to it with interest upon maturity.By changing the facility rate, the Bank of Latvia increases or decreases the attractiveness of the deposit facility.