16. pants

The long-term foreign exchange

swaps have served their intended function of contributing to the

broader availability of long-term credit in lats. We will

therefore discontinue this instrument by end-December 2001. We

will also strive to reduce our reliance on short-term swaps, only

using this instrument for monetary fine-tuning. For this purpose,

the outstanding stock of short-term swaps would normally not

exceed LVL 25 million.