According to him, the banks' profits in the first five months of this year amounted to EUR 250 million, but at the same time, the volume of loans issued has not increased to the extent that would be desirable, so a way must be found to significantly increase the volume of loans issued.
Valainis noted that the volume of bank lending is currently up by around 3% compared to the same period last year, while the desired increase would be 8-10%.
"We need to find better incentives. This would be a kind of agreement with the banks - we impose this tax on you, you may not pay it if you start financing the economy," the economy minister said.
Valainis stressed that the excess profits tax could also be introduced individually for each bank to avoid "collective irresponsibility when you can say - we are already financing, but the others are not".
According to the Economics Minister, if a bank meets the requirements to increase its lending rate, the amount paid in excess profits tax could be returned to it.
"This is the approach - please, either pay the tax or finance the economy. We are enshrining this approach in law. If the banks start financing the economy, you will get the tax back. If you don't finance, we will invest this money in our own budget priorities and instruments and start introducing new instruments ourselves," the Minister said.
The excess profits tax on banks could be introduced from next year so that at least an additional EUR 75 million could be counted on in next year's budget, Valainis said.
