Lithuanian President Gitanas Nausėda on Monday signed into law the “temporary banking solidarity contribution” bill, adopted by the parliament last Tuesday.
The levy was proposed as banks in Lithuania are projected to earn more than 1 billion euros in profits this year, which is deemed unexpected as they profit from the European Central Bank’s policy of raising interest rates.
Under the law, the levy will amount to 60 percent of banks’ net interest income that exceeds the four-year average by more than 50 percent.
The levy is expected to raise more than 400 million euros in revenue for the state. The money will be then used for defence, military, and civilian transport infrastructure.
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