Lithuanian president signs banking solidarity contribution bill into law

VILNIUS – Lithuanian President Gitanas Nauseda on Monday signed the temporary banking solidarity contribution bill, adopted by the parliament last Tuesday, into law, the presidential office has confirmed it to BNS.

Such a levy was proposed as banks in Lithuanian 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 new law, the levy will amount to 60 percent of banks' net interest income that exceeds the average of four regular financial years 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 defense and military and civilian transport infrastructure.