Lithuanian parlt takes 1st steps towards establishing state bank

  • 2020-06-16
  • BNS/TBT Staff

VILNIUS – The Seimas of Lithuania has given its initial backing to the ruling block's proposal to start preparations for the establishment of a state bank on the basis of an existing fund or agency after 69 lawmakers voted in favor, 12 were against and 15 abstained.

Such a bank would seek to receive a license and would be supervised by the central Bank of Lithuania.

The bill will be further considered by the Seimas on June 23.

The bill also urges the government to immediately start consultations with the European Commission on technical assistance for the establishment of such a bank, and also consider the state's potential participation in such a bank's capital.

President Gitanas Nauseda also back the idea of establishing a state bank.

Finance Minister Vilius Sapoka and Vitas Vasiliauskas, head of the Bank of Lithuania, however, are cautious. Sapoka has said earlier the establishment of such a bank would take around a year and would cost around 1 billion euros.