The Seimas speaker approves the idea that seeking to eliminate the underground economy payments in cash should be limited. However, she says this would directly increase income of commercial banks.
"Commercial banks directly benefit from the restriction of cash. The prime minister understands this and is probably pressing the head of the Bank of Lithuania for these fees to be lower," Grauziniene told radio Ziniu Radijas and added that the head of the central bank cannot have direct influence as this requires legal justification.
According to Grauziniene, Lithuania has a closed banking system consisting of Scandinavian commercial banks. Therefore, the state should exert greater effort to attract more banks which would create competition.
The Seimas speaker was critical of market regulation using forcible measures, as proposed by the Bank of Lithuania. She also criticised the restriction of cash payments starting from certain amounts. The provision enters into force in July and will apply to both natural and legal persons.
"In my personal opinion, based on a vast 20 year experience in the financial sector, this is a secondary and minor measure that will perhaps help control the flow of money. This mechanism will allow particular institutions observe and follow financial flows. () The state needs certain measures, but is this the main one in fighting corruption? I do not really think so," said Grauziniene.
