Bank of Lithuania

The Agreement on Net Financial Assets (hereinafter – ANFA) is an agreement between the euro area national central banks (NCBs) and the European Central Bank (ECB) on the limit for non-monetary policy holdings and the management of net financial assets. ANFA is necessary to ensure that NCBs, as independent authorities, continue to manage net financial assets and that such management is in accordance with the single monetary policy objectives. The Bank of Lithuania became party to ANFA on 1 January 2015. According to ANFA, net financial assets are calculated as follows: balance sheet liabilities not directly related to monetary policy are deducted from the central bank’s balance sheet assets that are not directly used to carry out monetary policy. Such assets are usually comprised of gold and foreign currency reserves, investments in euro, intra-Eurosystem claims (participating interest in the ECB, the Bank of Lithuania’s shares in ECB foreign reserves, TARGET2 requirements, and other claims), while deducted liabilities are deposits of the public sector and foreign central banks, intra-Eurosystem liabilities (including TARGET2 liabilities), capital and reserves.

The Bank of Lithuania determines the amount of financial assets, taking into consideration market conditions as well as investment opportunities and restrictions; however, the average amount of financial assets cannot be above the maximum amount of net financial assets set in accordance with ANFA. ANFA also stipulates that the maximum amount of net financial assets of the Bank of Lithuania will not be reduced to a level below the initial (historical) one, recorded during the adoption of the euro, i.e. EUR 5.856 billion.

Amount of the Bank of Lithuania net financial assets (EUR billions)

Period End-of-period amount Average amount over the period
2015 1.846 1.492
2016 1.954 0.331
2017 2.067 –0.180
2018 4.461 2.262
2019 1.904 1.138
2020 –0.955 –1.440
2021 –7.279 –4.535
Last update: 04-04-2022