The state is considering buying a bank – DELFI Business

“The Commission (inter-institutional working group created by order of the Minister – BNS) must continue its work and examine various options, including the possible purchase of an existing bank.” We are talking about banks in our country, “R. Sinkevičius told the journalists on Wednesday after a meeting with President Gitanas Nausėda.

According to him, the possibilities of merging the national development institution “Garantías de Inversión y Negocios” (Invega) and others into the bank are also being considered. It was previously said that in addition to Invega, the bank would be established on the basis of the Public Investment Development Agency and the Agricultural Loan Guarantee Fund.

We discussed with the president that several variants of the bank concept should be considered, among them institutions like Invega, which has cash and today it can almost be called a mini ticket, because it provides guarantees, loans, connects other institutions to make loans. the opportunities to provide would be greater and more attractive for companies, competitive or even provide services under better conditions than commercial banks ”, said the Minister.

For his part, G. Nausėda said that the first step in creating a state development bank should be the consolidation of existing development institutions.

“Working in the Lithuanian regions, I hear complaints from business representatives affected by the coronavirus pandemic about delayed support and compensation. It is clear that the state currently lacks the capacity to do so. Therefore, the first step for the creation of a state development bank should be the consolidation of the existing state financial development institutions, ”says G. Nausėda in the report. The president also highlighted the need to develop a long-term adaptation plan for the new measures implemented during the pandemic, such as direct loans and the Business Support Fund.

According to G. Nausėda, the State needs a financial institution capable of administering the measures provided for in the economic transformation plan in a transparent and efficient manner, and this requires a depoliticized professional management.

In June, Seimas ordered the government to initiate procedures to establish a state-owned bank, which should start consultations with the European Commission (EC) on technical assistance by September.

“The EC must examine whether the scheme to be proposed does not distort competition, if it is not excessive state aid for one type of business, and we must obtain the approval of the EC for such action,” said R. Sinkevičius.

According to the minister, the state bank to be established will not be established on the basis of the Lithuanian post; the post office could provide retail banking services.

“The problem is that in the regions, the big banks are no longer expanding their range of services, but are reducing it, this needs to be compensated. I think that the role of the Lithuanian post could be to provide premises and services to the future bank. Retail banking could be used at post offices, “he said.

“Converting the post office into a bank does not seem realistic to me, it will probably be a merger of institutions like Invega and other state institutions in one vein and the creation of such a bank, but postal participation can also be connected,” he added .

At the end of July, a working group created by R. Sinkevičius evaluated the establishment of the State Development Bank, the request to the EC of the possibilities and scope of technical assistance and other issues. It is scheduled to present its findings to the government in the second half of August, the ministry said.

The working group is chaired by the Deputy Minister of Economy and Innovation, Jekaterina Rojaka, and includes Deputy Minister Marius Skuodis, the Director of the Department of Investment Coordination of the European Union of the Ministry, Rita Armonienė, the Foreign Minister Alenas Gumuliauskas, the Deputy Minister of Agriculture Evaldas Gustas, the adviser to Finance Minister Algimantas Rimkūnas and other representatives.

The establishment of the bank is recognized as an important economic project for the state.

Following a presidential debate in early July on the creation of such a bank, authorities reported that authorities were moving towards a commitment to establish a state development bank that would merge several existing institutions but would not provide retail banking services.

Finance Minister Vilius Šapoka said then that different countries “unified the dictionary.” According to him, a consensus was reached that three organizations should be consolidated into one: Invega, VIPA and the Agricultural Loan Guarantee Fund.

Kristalina Georgieva, director of the International Monetary Fund (IMF), said it was crucial to have a strong governance model that was independent of political influence when creating a state bank.

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