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18.08.2023
Starting in August of this year, Latvijas Pasts will invest part of the financial assets of its payment services customers in government bonds, increasing the security of these customers’ funds. Latvijas Pasts expects to allocate up to 30 million euro this way.
“Inflation, geopolitical risks, and economic unpredictability are a matter of concern for every resident, especially when it comes to the security of their property or savings. In its capacity as a financial services provider, Latvijas Pasts has held its customers’ financial funds for a long time and at the same time is responsible for the security of these funds. Allocating funds in such securities is one of the safest ways to manage financial assets, so we made a decision to invest funds in debt securities,” Mārcis Vilcāns, Chairman of the Board of Latvijas Pasts, points out.
Latvijas Pasts will allocate funds based on a conservative investment strategy. According to it, funds will be invested in central government debt securities or bonds denominated in the euro currency and issued by a member state of the European Union and/or the European Economic Area, and rated by at least one of the rating agencies – Moody’s, Standard & Poor’s or Fitch – with the highest credit ratings. Latvijas Pasts plans to acquire the government bonds of the Baltic states and Germany. The maturity of these bonds may not exceed five years at the time funds are allocated.
While preparing for the implementation of the new strategy, improving its operations, and taking this step, Latvijas Pasts will ensure that, if necessary, the funds invested in these securities will be freely transferable, providing Latvijas Pasts and its customers with additional protection against potential risks posed by cooperation banks. As before, Latvijas Pasts will continue to carefully monitor and evaluate its cooperation with banks, suppliers, and other partners.
Regulations provide several alternative options for payment institutions to secure customers’ funds. One option is to invest in safe, liquid, low-risk assets. Central government debt securities with an appropriate credit quality level selected by Latvijas Pasts are also classified as liquid and low-risk assets. The Bank of Latvia supervises the operations of Latvijas Pasts as a payment institution and has not objected to the partial investment of customers’ funds in debt securities.
As a result of this step, Latvijas Pasts payment services customers will not experience any changes in their daily routines.
About SJSC Latvijas Pasts
Latvijas Pasts ensures the widest availability of postal services throughout Latvia by maintaining more than 600 post offices and an extensive network of indoor and outdoor parcel lockers. The primary function of the company is provision of the universal postal service; Latvijas Pasts also provides commercial transport, express mail, parcel locker, payment, press subscription, retail and philatelic services. Latvijas Pasts is a wholly State-owned company with around 2,700 employees. The quality measurements of Latvijas Pasts domestic mail deliveries are regularly conducted by Kantar TNS, one of the leading market, social and media research agencies in Latvia. In turn, the quality measurements of the cross-border deliveries are provided within the framework of the International Post Corporation through the intermediary of the research companies Kantar TNS, Ipsos and Quotas.
Additional information:
Vineta Anna Sarkane | Senior Public Relations Project Manager
E-mail: pr@pasts.lv; vineta_anna.sarkane@pasts.lv
Latvijas Pasts social media profiles:
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