The decision on the State Bank lacked jurisdiction to provide assistance in Brussels

Added a comment from Rimantas Sinkeviius, Minister of Economy and Innovation

In the introduction of the working group, we stated that currently the availability of financial instruments in the market is limited and changes are necessary. Members of the working group called on the European Commission to request technical assistance within the framework of the structural reform support program for the establishment of a state bank and the provision of artistic services, said Vek Jekaterina Rojaka, Deputy Minister of Economy and Innovation and head of the working group that evaluates the state bank.

According to her, the working group considers three possible options when evaluating the issue of establishing a state development bank.

The current situation of the financial services market was considered to leave it as is, but this option was rejected.

The issue of the consolidation of the national economic development agency Invega, the Public Investment Promotion Agency and the Agricultural Loan Guarantee Fund with a view to establishing a controlled company was also evaluated.

According to J. Rojaka, the alternative of acquiring a bank or creating a new state bank has been considered for some time.

This alternative is not currently possible from a legal point of view. It is necessary to change the legal regulation, so the implementation of an alternative of this type is the one that takes the longest time, said the vice minister.

Ivados travels to Gediminas 11

The working group will present its introduction to the Government. The conclusions call for the European Commission to participate in the program to support the structural reform of the State Development Bank. The working group also requested the appointment of experts to carry out a joint study on the availability of state banking and state-of-the-art services in the country’s regions. Finally, after consultation with the European Commission, the option of establishing a state development bank has been proposed.

It would take less time to implement some options, more time to implement others, but basically we are talking about the fact that the creation of the State Development Bank took from a year and a half to two, added J. Rojaka.

According to J. Rojaka, the introduction of the working group can be partially taken into account or rejected, but the introduction of the working group is usually taken into account when the EU makes decisions in the Cabinet of Ministers.

Minister R. Sinkeviius: it is not worth connecting agentr

According to Rimantas Sinkeviius, Minister of Economy and Innovation, the presentations of the working group are submitted to the Government and it must decide on the steps to follow.

According to him, the working group evaluated various alternatives and suggested an optimal solution, as Lithuania needs technical and expert assistance on the issue of bank failure.

I do not believe that the alternative of merging national development agencies is appropriate at this time, as these companies are actively implementing business support measures in the wake of the COVID-19 pandemic. Any intervention in the life of the companies that implement the aid measures would cause more chaos, the employees would live in uncertainty, which would not really accelerate the aid to the company, so the alternative, in my head, is not the right one , quotes R. Sinkeviius in the report.

The economy minister said in early August that the purchase of a bank was already being considered as an option.

Prezidentasprie Jim Mamen

V recalls that the inter-institutional working group created at the end of July evaluated the possibility of setting up a State Development Bank, requesting the European Commission for technical assistance and other questions.

Representatives from the Ministries of Economy and Innovation, Communications, Finance and Agriculture, the Bank of Lithuania and the Office of the President participated in the working group.

The bank’s crackdown is recognized as an important economic project for the state.

According to the European Commission, the Lithuanian banking sector is currently one of the most concentrated in the EU, so systemic risk is also increasing. The three largest banks, Swedbank, SEB and Luminor, hold about 80% of the market.

President Gitanas Nausda believes that the state development bank that is being created should not be used for mother banks either. According to the president, the main task of the new state bank should be the financing of long-term structural projects, as well as the granting of loans to small and medium-sized companies.

The working group considered several alternative solutions to consolidate all national development institutions operating in Lithuania (UAB ems kio loans garantij fondas, UAB Investicij ir verslo guarantees, UAB Viej investicij pltros agentra, establishment of a new UAB Valstybs investicij valdymo agentra ) or various mergers or mergers. The constitution of the Holding was also examined on the basis of the UAB ems kio loan guarantee fund, the UAB Investicij ir verslo garantijos, the development agency UAB Viej investicij and the creation of a new UAB agent Valstybs investicij valdymo. And another alternative is the constitution or acquisition of an existing bank, but, in the opinion of the working group, this is not currently possible due to current legal regulations, so, opting for an alternative, a separate law should be adopted and a new legal regulation should be established.

The Bank of Lithuania participated in this ministry working group at the invitation of the ministry only by providing expert assistance (what is the bank’s licensing process and its duration, what are the capital requirements applied, etc.) for those responsible politicians can make measured decisions. In any case, the decision on one or another form of development institution at the state level (bank) will be made by the executive board taking into account the detailed analysis of the alternatives, said Jekaterina Govina, director of the Supervisory Authority of the Bank of Lithuania. .

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