US company BlackRock Solutions Inc for EUR 1.182 million will ensure financial risk management for the Bank of Latvia in the coming five years, the bank reported LETA. The bank’s spokesman Janis Silakalns said that the Bank of Latvia financial investments (currencies and gold) at the end of 2016 reached EUR 5.8 billion, which is a sum comparable to Latvia’s central government budget and by one fourth more than investments of the Lithuanian and Estonian central banks together. At the time when the Bank of Latvia was restored, its investments were 58 times smaller – about EUR 100 million.
“Skillfully managed investments ensure profit, most of which goes into the state budget. In the past five years Bank of Latvia earned EUR 186 million in profit, transferring EUR 143 million into the state budget. Since restoration of the central bank’s operations, the bank has transferred EUR 368 million of its profit into the state budget. In order to safely manage the investments the Bank of Latvia uses financial risk management system,” said Silakalns.
BlackRock Solutions Inc has been selected for the task in an open tender. Currently financial risk management services are ensured by US company Wilshire Associates Inc, said Silakalns. The Bank of Latvia manages assets worth more than EUR 16 billion in total.
