OREANDA-NEWS. July 21, 2014. The Latvijas Banka Council adopted amendments to some rules and regulations.

On 5 June 2014, the Governing Council of the European Central Bank adopted a decision "On Remuneration of Deposits, Balances and Holdings of Excess Reserves" (in effect as of 7 June 2014), which shall be directly applied as of the moment of taking effect and also set a negative Eurosystem deposit facility rate (minus 0.10%) taking effect on 11 June 2014.

Thus counterparties in the Eurosystem monetary policy operation are obligated to pay remuneration according to the deposit facility interest rate set by the Eurosystem for using the deposit facility as well as settlement accounts of participants of the TARGET2-Latvija system and other customers of Latvijas Banka (credit institutions and credit unions) are remunerated at the deposit facility rate set by the Eurosystem unless they are used to hold minimum reserves.

The Latvijas Banka Council amended the 4 November 2010 "Regulation for the Participation Procedure in TARGET2-Latvija" and the 16 September 2013 "Regulation for Servicing of Bank of Latvia's Customer Accounts" stipulating the procedure how remuneration according to the negative Eurosystem deposit facility rate is calculated and applied on the settlement accounts of participants of the TARGET2-Latvija system and those credit institutions that do not participate in the TARGET2-Latvija system as well as the settlement accounts of credit unions.