aA
Lithuanian Finance Minister Vilius Sapoka on Thursday liked public debate over the establishment of a state-owned bank to "the construction of the Tower of Babel", noting that some want more bank branches in the regions, others want cheaper services, and still others want more loans to businesses and investment in public infrastructure.
Vilius Šapoka
Vilius Šapoka
© DELFI / Domantas Pipas

The finance minister is inclined to support the consolidation of the state-owned credit guarantee agency INVEGA, the Public Investment Development Agency and the Agricultural Loan Guarantee Fund, but he opposes the state's participation in the retail banking business.

"There's a lot of confusion in discussions about the state bank, something reminiscent of the construction of the Tower of Babel," he told the Ziniu Radijas radio station.

"Some want more physical service locations in remote regions and others perhaps want lower rates. The third group wants better access for businesses, and the fourth group wants funding for public infrastructure," he said.

According to Sapoka, all European Union countries have national development agencies, like Invega, the Public Investment Development Agency and the Agricultural Loan Guarantee Fund in Lithuania.

“I think the wisest solution would be to consolidate these three institutions into one strong structure that would cover the shortcomings in all areas," the minister. "This would increase competition and could help attract funds from private institutional investors."

"We don't need a banking license for that, but we may call it a National Development Bank if it sounds better," he added.

Sapoka sticks to his position that the state's participation in the retail banking business would be a costly and risky project that would do "more harm than good".

"If someone wants to create a conventional bank that would compete with the private sector, I think this path leads to nowhere," he said.

The ruling bloc's initiative to begin preparations for setting up a National Development Bank passed the first reading in the Seimas earlier this week.

They suggest creating such a bank on the basis of the existing guarantee agencies. It would apply for a banking license and would be supervised by the central Bank of Lithuania.

President Gitanas Nauseda has backed the idea of setting up a state bank, but both Sapoka and Vitas Vasiliauskas, the central bank's government, have taken a cautious stance on the matter.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Increasingly more Belarusian companies intend to move to Lithuania

Increasingly more Belarusian companies consider relocation to Lithuania, which has somewhat relaxed...

Lithuanian airports’ statistics: gradual recovery has begun

As vaccination campaigns accelerate in the European continent, the challenges of the pandemic for...

Global Leader Network Company CBRE Baltics will Manage the Properties of Baltic Horizon Fund

Baltic Horizon Fund has selected CBRE Baltics, which is part of global real estate and investment...

Minister: Lithuania has potential to produce COVID-19 vaccines

Lithuania has the potential to produce COVID-19 vaccines, Economy and Innovation Minister Ausrine...

Sinkevicius: no strict deadline for submitting economic recovery plan

As Lithuania plans to submit its economic recovery plan to Brussels slightly later, in the middle of...

Top news

French correspondent in Baltics: sometimes, Lithuania becomes the country where you first set foot in Europe (1)

Marielle Vitureau works as a foreign correspondent for French media, mainly Radio France...

Nearly one-third of Lithuanians in favor of gender-neutral partnership law (1)

Nearly one-third, or 30 percent of Lithuanians, are in favor of legalizing gender-neutral partnership...

More deaths and fewer births regirstered in April

More people died and fewer people were born in Lithuania last month, compared to the same period last...

Last unknown tower of Vilnius' Lower Castle located at Gediminas Hill foot

The last unknown tower of Vilnius' Lower Castle has been localized at the foot of the Lithuanian...

837 reports on adverse COVID-19 vaccine reactions recorder in April

A total of 837 reports on adverse reactions to COVID-19 vaccine jabs were received in Lithuania in...