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2019.05.07 17:41

Bank of Lithuania reports 0.8% investment returns despite difficult year

LRT.lt 2019.05.07 17:41

The Bank of Lithuania has increased its financial assets 0.8 percent last year, or by €35.1 million, according to the central bank's board member Tomas Garbaravičius.

He says that the central bank's investment portfolio is diversified enough to withstand possible economic shocks.

Despite having suffered a loss of €30bn in 2017, the bank's investment returns totaled €53bn over the last three years, or 2.2 percent, Garbaravičius said on Tuesday.

“Last year was difficult, because of higher interest in the US and falls in prices of shares and other investments,” he summarised investment climate in 2018. However, he adds, the Bank of Lithuania managed to stay in the black by diversifying its investment portfolio and thanks to a strong US dollar.

The Bank of Lithuania invested some of its financial assets into shares which, Garbaravičius says, promise larger returns in the long term.

“Only about thirty central banks in the world are allowed to invest into shares. The Bank of Lithuania holds shares and bonds, which is something,” he says.

According to Garbaravičius, the central bank's investment portfolio is highly diversified and shielded from economic shocks.

The Bank of Lithuania's financial assets are held in four portfolios: 5.8 tons of gold, an 888-million reserve fund, €172m in short-term portfolio, and a 3-billion investment portfolio geared towards maximum mid-term returns.