3. Article

Monetary conditions during the first nine months of 2001 were sufficiently tight to support the Bank of Latvia's (BoL) exchange rate objective, and all monetary performance criteria to date under the program were observed. In addition, the BoL reduced the volume of new issues of both long-term and short-term foreign exchange swaps as envisaged under the program. Despite the continued strong growth of credit to the private sector, the banking system appears to operate on a firm footing.