Lithuanian government asks banks to suspend loan interests for conscripts

DELFI / Karolina Pansevič

Although commercial banks agree that conscripts could repay loans later, but say that loan interest will be calculated during military service and will have to be paid. According to the prime minister, recently the Government has been smoothly cooperating with the association of commercial banks and thus the issue might still be solved.

“I hope they will understand the necessity taking into account the geopolitical situation and we will reach a common decision to postpone certain financial commitments,” said the prime minister.

Butkevičius says the number of conscripts is not high, therefore banks would not incur major financial losses.

It has been proposed to allow Lithuanian conscripts to repay their bank loans later, although they will still have to pay their interest.

The news was delivered by Stasys Kropas, president of the Association of Lithuanian Banks, following a sitting of the Seimas Committee on National Security and Defence.

“They should pay their interest but the loan repayment, if requested, would be postponed for 9 months. The Committee members agreed to allow conscripts to apply to their banks and the latter would be obligated to postpone their loan repayment but the interest would still be calculated from the instalments accumulated during their service. Also, after their service, a new loan repayment schedule should be made,” said Kropas.

According to him, this is still a matter of debates where to include these provisions – to the Law on the Bank of Lithuania or to the Law on Military Conscription.

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