Lithuanians have billions of accounts but do not lend to defense

The Vice -President of the Seimas was tempted by defense bonds five months ago.

« It may not be attractive in commercial terms, as other but normal, reliable investment, » Olek said.

Anyone, not just politicians, can contribute to the security of the country. Buy bonds, and the government returns the money after a while and pays 2 percent more. interest.

« It is better to pay your people than somewhere outdoors, » Olek said.

LNK stop shot.

The ruling are calling for residents and companies to support their defense with their money to raise the funds raised to buy weaponry, but avoid this example.

« I think, but I don’t have it yet, » Algirdas Butkevičius, a member of the Seimas, admitted.

« Not yet, I have not been buying.

The fact that Lithuanians keep huge amounts of savings – almost 24 billion in accounts – in their accounts.

But to move this money is sluggish. In 5 months, defense bond residents and business bought only more than $ 20 million. euros.

« My goal is to make the most of this tool, » said Dovilė Šakalienė, Minister of National Defense.

Photo by A. Ufarto / ELTA

« I think there is still a lot of money to do, » said Luminor, chief economist Sigismund Mauric, Luminor.

Politicians said the lack of information was hindered by lending to the country’s security.

« The expression of financial populism might be attractive, but it is not fully worked, » Butkevičius said.

And the return does not give the way you want. For a year’s deposits, some of the banks and unions are tempted by the percentage or even two higher interest rates.

« They are ineffective, economically useless, » said Ignas Vėgėlė, a member of the Seimas.

« I know that tool, maybe a higher percentage could be, » Gedvilas said.

Vice -President of the Seimas J. Olekas said that the ruling were already considering not only to increase taxes, but also to borrow more through bonds for defense.

« This decision must be valid for 3-5 years to see people’s financial perspective, » he explained.

Mr Olek said it might be that the government would offer to pay more for bonds than it is now, but did not name how much.

« They should be slightly larger, perhaps at what percentage point than they are on the market now, so that people can have financial benefits, » Olek continued.

Last week, the government borrowed more on the market than it could do from the population. 3.4 percent will pay for the 7 -year bonds. interest.

« It is very important to have a convenient investment mechanism, and interest could be higher, trying to employ funds in your country rather than borrowing from abroad, » said Ž. Mauric.

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Both the ruling representatives and the opposition would be tempted to lend to the country’s security if the interest was one and a half or twice as much.

« In interest rates, risky bonds, 8-10 % if it were 4 % offers a risky bond, it would certainly be attractive, » said Vėgėlė.

« The interest rate of the bonds should be slightly higher than that of human -kept on banks. The bond interest rate should be 3-3.5 percent, » said A. Butkevičius.

However, the Minister of National Defense also encourages people to motivate people – to explain why and who will use funds, why they really need them.

« Another factor is public information. We sometimes somehow naively think that it is enough to put somewhere on the website that you can buy them, and perhaps one press release passes in the media, » said D. Šakalienė.

« The problem I see now is that there is a lack of information about new emissions. Only when looking for that information specially can find that information. More knowledge, more advertising would certainly be useful, » said Viktorija Čmilytė-Nielsen, Vice-President of the Seimas.

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As the government will popularize defense bonds, the Social Democrat J. Olekas promises to explain in April, as with tax changes.

Defense bond residents and businesses can buy from October last year.