Lithuania’s commercial banks will soon transfer the second installment of the new solidarity levy for the third quarter of this year, with the central Bank of Lithuania estimating it to exceed 100 million euros.
The first installment of 56 million euros for the second quarter was paid by banks in late August., and the second installment is due by November 30.
The central bank says the total levy 2023 could be around 250 million euros, and the money will be used for military mobility and dual-use transport infrastructure.
The levy is calculated on net interest income that exceeds the average of the last four years by more than 50 percent. The levy was introduced as the country’s banks are expected to make three times as much profit this year as they did last year – more than 1 billion euros, which is seen as a windfall as they benefit from the European Central Bank’s interest rate hikes.
The banking sector’s fist-half profits amounted to 515 million euros, up by 2.5 times more than last year.
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