Central Bank Independence in Transition Economies

Central Bank Independence… 

S&A 120 

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audits Bank's documents. After the audit and Board of Governors' approval, the Bank's 

annual report and balance sheet are published for the public knowledge (Art. 43).  

8C. Limitations on Lending 

The Bank of Latvia is entitled to grant short-term credit to the Government, 

limited to one-twelfth of the current budget annual revenue (Art 36). An agreement 

between the Bank and the Ministry of Finance gradually reduced the direct credit line 

to the Government, planned to be eliminated by November 1995. Thereafter the deficit 

has been financed solely by issuing Treasury Bills. The Bank is also entitled to 

perform other transactions with Government securities (Art. 37).