Government backs voluntary savings initiative, wants NPB to set rate

On 21 October 2026 the Lithuanian government approved in principle two draft lawsE TAR opening a voluntary channel for residents' savings at credit institutions to fund growthE TAR, and sent the Seimas its proposed changes before they pass. The drafts are No. XVP-1556, a new law on the voluntary economic mobilisation of residents' funds held in special current accounts at credit institutionsE TAR, and No. XVP-1557, amendments to Articles 3, 4 and 6 of the State Debt Law No. I-1508E TAR. Both reached the Seimas under the President's decree of 25 May 2026 No. 1K-698. Nothing in the drafts is in forceE TAR; every point below is the government's proposed position, not enacted law.

Under the government's version, a permanent Lithuanian resident could join the economic-growth financing initiative (finansavimo iniciatyva) in one of two ways: open a separate current account dedicated to the initiative, or link an investment account already declared under the Gyventojų pajamų mokesčio įstatymas (Law on Personal Income Tax) with the participating credit institutionE TAR. Participation would be formalised by a bank-account contract or a linking agreement, and a client could hold the account in one credit institution only.

The interest rate would be set by the nacionalinis plėtros bankas (national development bank, NPB), not by the governmentE TAR, and reviewed twice a year, by 15 December for the January-to-June period and by 15 June for the July-to-December period, with an additional review possible when the European Central Bank changes its deposit facility rate by more than 0.25 percentage points; the rate and its application period would be published on the NPB website. No statutory minimum or maximum would apply; the ECB warned in opinion No. CON/2026/15 of 21 April 2026 that fixed caps could become unsuitable.

Linking an investment account would carry investment-account tax treatmentE TAR. The government proposes amending Articles 2 and 12-1 of the Law on Personal Income Tax so that interest paid on funds used in the initiative through a linked investment account counts as income received through the investment account, meaning income tax would arise on withdrawal when payouts exceed contributions rather than when the interest is received.

Credit institutions would apply to the NPB, sign a participation agreement, and on-lend the account funds to the NPB, with the on-lent amount at each day-end matching the interest-bearing balances unless agreed otherwise or the state-guarantee limit is exceeded. That limit would be set in the annual state-budget lawE TAR. The fee paid to credit institutions would be set by the NPB, having regard to the ECB deposit facility rate, market funding conditions and attributable administrative costs, rather than by the finance minister; interest would be paid monthly on the last day of the month, and a departing institution would give six months' notice.

Consumer clients (vartotojai) would fall under the consumer-protection provisions, and before signing, a credit institution would have to disclose the account's purpose, restrictions, interest and withdrawal terms, risks, deposit-insurance coverage and, for linked investment accounts, the main tax consequences. No fee could be charged for participation or for opening and administering the account, except for separately ordered optional services. On the State Debt Law draft, the government would drop the proposed change to Article 3(1)(2) while the NPB remains a central-government-sector entity, keeping NPB borrowing for the initiative within the limits approved by the Seimas and allocated by the government, and it asks for an ex post evaluation clause in the new law.

Legal basis: Government Resolution No. 805 of 21 October 2026 on draft laws No. XVP-1556 and No. XVP-1557; President's Decree No. 1K-698 of 25 May 2026; Law on Personal Income Tax No. IX-1007, Article 12-1.