Lithuanian Ministry of Finance suggests imposing solidarity fee for banks to be used by defence sector

Because the overall profits of Lithuanian banks are expected to reach approximately one billion euros, Lithuania Ministry of Finance proposes imposing a temporary solidarity fee for banks to be used by the defence sector.
«We propose introducing a temporary solidarity fee. Revenue from this will be used to cover the growing defensive needs,» said Lithuanian Minister of Finance Gintare Skaiste on Thursday, the 9th of March.
According to him, the size of the solidarity fee would be at 60% of the bank’s net interest income if they exceed the average annual net interest income of the previous four years by at least 50%.

The size of the solidarity fee in 2023 would be calculated based on net interest income of 2018-2021. That of 2024 will be based on net interest income of 2019-2022.

The solidarity fee would remain in force for two years, and it would be binding for banks whose volume of resident deposits reaches at least EUR 400 million, the minister said.
«It is important for the solidarity fee to apply only to unexpected and significant net interest income and for it to be a temporary measure to prevent causing negative consequences for the financial system, its stability and competition,» stressed chairman of the Bank of Lithuania Gediminas Šimkus.

Revenue from this new fee is planned to reach EUR 510 million.

Money acquired from the solidarity fee is planned to be used to finance the various military infrastructure projects.
The total estimated cost to help improve the mobility of Lithuania’s military reaches EUR 963 million. This amount is planned to be acquired using the aforementioned solidarity fee and EU finances.
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