News2019.11.15 09:00

Establishing state bank 'shouldn't be taboo', says Lithuanian President

BNS 2019.11.15 09:00

The Lithuanian government should consider setting up a state-owned bank to introduce more competition into the country's banking system, President Gitanas Nausėda says.

“I would very seriously think – together with the government – about establishing a state commercial bank. In the current situation, this alternative shouldn't be a taboo,” Nausėda said in an interview with the news website.

“I think we could start discussions on ways to establish a state commercial bank in Lithuania,” he added.

Nausėda also believes a tax on bank assets, proposed by members of parliament, could instead be levied on interest rates.

The Lithuanian government is now proposing a 0.03-percent monthly tax on assets over 300 million euros held by banks, credit unions and other loan issuers.

Read more: Lithuanian cabinet backs retail, bank taxes

Revenue from the tax is already included in the 2020 state budget bill, estimated to stand at around 50-60 million euros.

The Association of Lithuanian Banks says the proposed levy violates the country's constitution, because it singles out some financial institutions.

LRT has been certified according to the Journalism Trust Initiative Programme

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