ECB warns Lithuanian government over bank tax plans

European Central Bank
The European Central Bank headquarters in Frankfurt

The European Central Bank has warned Lithuania’s government over its plans to impose a tax on lenders’ financial assets, echoing concerns raised by several lawmakers.

The Lithuanian parliament is considering whether to vote for a draft law that would make banks and other credit institutions pay a monthly tax. The tax would be equal to 0.03% of the value of their assets above a threshold of €300 million ($334 million).

But the ECB warned that the new tax could reduce banks’ lending and harm

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