REPUBLIC OF LITHUANIA
LAW
ON THE BANK OF LITHUANIA
1 December 1994 No I-678
Vilnius
(As last amended on 15 December 2011 ─ No XI-1800)
CHAPTER 1
GENERAL PROVISIONS
Version of Article 1 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 1. The Bank of Lithuania
1. The central bank of the Republic of Lithuania shall be the Bank of Lithuania, belonging by the right of ownership to the State of Lithuania. The Bank of Lithuania shall form a part of the European System of Central Banks. The regulation of the activities of the Bank of Lithuania has been harmonised with the legal acts of the European Union, specified in the Annex to this Law.
2. The Bank of Lithuania shall manage, use and dispose of assets to the extent, in the manner and according to the terms prescribed by this Law.
Version of Article 1 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 1. The Bank of Lithuania
1. The central bank of the Republic of Lithuania shall be the Bank of Lithuania, belonging by the right of ownership to the State of Lithuania. The Bank of Lithuania shall form an integral part of the European System of Central Banks and shall achieve the objectives and carry out the tasks of the European System of Central Banks in accordance with the guidelines and instructions of the European Central Bank. The Bank of Lithuania shall perform its functions and carry out its activities to the extent that it does not interfere with the objectives of the European Central Bank and of the European System of Central Banks and complies with the legal acts of the European Union, including the legal acts of the European Central Bank. The regulation of the activities of the Bank of Lithuania has been harmonised with the legal acts of the European Union, specified in the Annex to this Law.
2. The Bank of Lithuania shall manage, use and dispose of assets to the extent, in the manner and according to the terms prescribed by the European Union law and this Law.
Article 2. Legal Status of the Bank of Lithuania
2. The Bank of Lithuania shall have a seal bearing the State Emblem of Lithuania and words ‘Lietuvos bankas’ (‘Bank of Lithuania’).
Article 3. Independence of the Bank of Lithuania
1. The Bank of Lithuania shall be governed by the Treaty on the Functioning of the European Union, the Protocol on the Statute of the European System of Central Banks and of the European Central Bank annexed to the Treaty on the Functioning of the European Union, as well as other legal acts of the European Union. The Bank of Lithuania shall be also governed by laws and other legal acts of the Republic of Lithuania in as much as they are in compliance with the Treaty on the Functioning of the European Union and the Protocol on the Statute of the European System of Central Banks and of the European Central Bank annexed to the Treaty on the Functioning of the European Union. In the event of a conflict between the legal acts of the Republic of Lithuania and the international treaties of the Republic of Lithuania, the international treaties of the Republic of Lithuania shall take precedence.
2. When implementing the objectives and performing its functions as well as pursuing the activities necessary for that, neither the Bank of Lithuania, nor the Chairperson of the Board of the Bank of Lithuania, the Deputy Chairpersons, the Members of the Board, nor other members of the staff of the Bank of Lithuania (hereinafter: ‘the Bank of Lithuania staff’) must seek and take instructions from the institutions and bodies of the European Union, the governments of the Member States of the European Union or any other institutions or bodies. The Government of the Republic of Lithuania and State institutions must respect the independence of the Bank of Lithuania and must not seek to influence the Bank of Lithuania and its staff in discharge of their duties.
Article 4. Branches, Representative Offices, Institutions and Enterprises of the Bank of Lithuania
The Bank of Lithuania shall have the right to establish branches, representative offices, institutions and enterprises, to be a shareholder or stakeholder in other institutions and enterprises in the Republic of Lithuania and foreign states, provided this is needed to carry out its functions.
Article 5. Foreign Relations of the Bank of Lithuania and its Representation of the State of Lithuania
1. The Bank of Lithuania shall maintain relations with foreign and international financial institutions and shall conclude agreements with them.
Version of the title of Article 6 until the date from which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 6. The Exclusive Right of the Bank of Lithuania to Issue Currency
Version of the title of Article 6 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 6. Issue of Banknotes and Coins
Version of paragraph 1 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
1. Only the Bank of Lithuania shall have the right to issue currency. It shall:
1) put into and withdraw from circulation the currency of the Republic of Lithuania according to the procedure established by law; and
2) establish denominations, distinctive, security and acceptance features of the currency of the Republic of Lithuania, withdraw banknotes and coins from circulation and replace them with other banknotes and coins by announcing this publicly, organise the production of the currency, its transportation and storage, establish procedures for withdrawing worn and damaged currency from circulation and for replacing and destroying the said currency, the arrangements for the reproduction of the banknotes and coins of the Republic of Lithuania, make up reserve funds of banknotes and coins, and perform the expert examination of the currency of the Republic of Lithuania and the banknotes and coins of the European Union’s single currency.
Version of paragraph 1 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
1. The Bank of Lithuania shall have the right to issue banknotes and coins in compliance with the requirements of the Treaty on the Functioning of the European Union.
2. The Bank of Lithuania is hereby designated as the National Analysis Centre (NAC) and the Coin National Analysis Centre (CNAC) in the Republic of Lithuania.
3. The Bank of Lithuania shall establish for credit institutions and payment institutions as well as other economic entities, which are involved in the collecting, handling and recycling of banknotes and coins, the requirements of verifying authenticity of the banknotes and coins of the money of the Republic of Lithuania and of the single currency of the European Union and of ensuring detection of counterfeit money and shall supervise the implementation of these requirements.
Version of Article 7 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 7. The Primary Objective of the Bank of Lithuania
Version of Article 7 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 7. The Primary Objective of the Bank of Lithuania
1. In accordance with the Treaty on the Functioning of the European Union, the primary objective of the Bank of Lithuania shall be to maintain price stability.
2. Without prejudice to its primary objective, the Bank of Lithuania shall, within the range of its competence, support the general economic policies in the European Union with a view to contributing to the achievement of the objectives of the European Union established in the Treaty on the Functioning of the European Union, and support the economic policy carried out by the Government of the Republic of Lithuania, without prejudice to the primary objective of the Bank of Lithuania and to the extent this meets the objectives of the European Central Bank and of the European System of Central Banks.
Version of Article 8 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 8. Functions and Activities of the Bank of Lithuania
1. In implementing its primary objective, the Bank of Lithuania shall perform the following functions:
3) determine the Litas exchange rate regulation system and announce the official exchange rate of the Litas;
Version of Article 8 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 8. Functions and Activities of the Bank of Lithuania
1. In implementing the provisions of the Treaty on the Functioning of the European Union and acting as an integral part of the European System of Central Banks, the Bank of Lithuania shall perform the following functions:
3) manage, use and dispose of the official foreign reserves of the Bank of Lithuania (hereinafter: ‘foreign reserves’);
2. In addition, the Bank of Lithuania shall:
1) act as a State Treasury agent according to the agreement with the Ministry of Finance of the Republic of Lithuania (hereinafter: ‘the Ministry of Finance’);
4) collect statistical information necessary for the performance of the functions of the Bank of Lithuania that are not related to the activities of the European System of Central Banks from state and municipal institutions and economic entities, set the procedures for the collection, compilation and dissemination of the said statistics, and compile the balance of payments, the international investment position and financial accounts of the Republic of Lithuania;
5) without prejudice to the requirements derived from its participation in the European System of Central Banks and notably those resulting from operations on behalf of public entities, be able to grant loans, secured by adequate collateral for the Bank of Lithuania, to credit institutions registered in the Republic of Lithuania in accordance with the procedure, conditions and terms established by the Bank of Lithuania;
3. The Bank of Lithuania shall carry out the activities necessary for the implementation of the functions laid down in Paragraphs 1 and 2 of this Article and for the development and maintenance of the infrastructure needed for their implementation.
Article 9. Legal Acts of the Bank of Lithuania
Within their competence, the Board of the Bank of Lithuania shall adopt resolutions, and the Chairperson of the Board of the Bank of Lithuania shall issue orders.
Article 10. The Board of the Bank of Lithuania
1. The Bank of Lithuania shall be governed by the Board of the Bank of Lithuania. The Board shall be comprised of a Chairperson, two Deputy Chairpersons, and two Members of the Board.
2. Only citizens of the Republic of Lithuania may be the Chairperson, Deputy Chairpersons, and Members of the Board of the Bank of Lithuania, provided they have not reached the age of 65 by the date of their appointment.
3. The Chairperson, Deputy Chairpersons and Members of the Board of the Bank of Lithuania may participate in the management of international financial institutions of which the Republic of Lithuania or the Bank of Lithuania is a member.
4. The Chairperson of the Board of the Bank of Lithuania shall be appointed for a term of five years and dismissed prior to the expiration of his or her term of office by the Seimas on the recommendation of the President of the Republic.
*5. Deputy Chairpersons and Members of the Board of the Bank of Lithuania shall be appointed for a term of six years and dismissed prior to the expiration of their term of office by the President of the Republic on the recommendation of the Chairperson of the Board of the Bank of Lithuania.
6. The Chairperson of the Board of the Bank of Lithuania may be appointed to his position for unlimited number of terms of office. The Deputy Chairpersons and Members of the Board may be appointed to their respective positions for no more than two consecutive terms.
*7. The amount of salaries of Deputy Chairpersons and Members of the Board of the Bank of Lithuania, without exceeding 90 per cent of the amount of the salary of the Chairperson of the Board of the Bank of Lithuania, shall be established by the Board of the Bank of Lithuania.
*Note: it shall be applied to Deputy Chairpersons and Members of the Board of the Bank of Lithuania appointed after the entry into force of this Law.
Article 11. Functions and Activities of the Board of the Bank of Lithuania
1. The Board of the Bank of Lithuania shall:
2) establish procedures for rediscount, loans, deposits, open market operations carried out at the Bank of Lithuania, and the procedures for the formation and holding of required reserves of credit institutions with the Bank of Lithuania, as well as for the application of other monetary policy instruments;
Subparagraphs 1, 2 and 3 shall be repealed on the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union.
Version of subparagraph 4 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Version of subparagraph 4 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
4) establish the principles and procedures for the management, use and disposal of foreign reserves that in accordance with the procedure laid down by legal acts of the European Union have not been transferred to the European Central Bank, in compliance with the requirements of the European Central Bank applicable to foreign reserves of the national central banks;
Subparagraph 5 shall be repealed on the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union.
Version of subparagraphs 8 and 9 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
8) decide on issues concerning the participation of the Bank of Lithuania in international banks and other international financial institutions, provided this is related to the functions of the Bank of Lithuania;
Version of subparagraphs 8 and 9 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
8) upon the consent of the European Central Bank, decide on issues concerning the participation of the Bank of Lithuania in international monetary institutions;
9) decide on matters of issue and withdrawal of the banknotes and coins and other issues related thereto in compliance with the requirements of the Treaty on the Functioning of the European Union;
10) establish branches, representative offices, enterprises and institutions of the Bank of Lithuania for carrying out its functions and decide on the acquisition of shares of (stakes in) enterprises and institutions related to the functions of the Bank of Lithuania;
12) establish the principles of service (work) and the status of the staff of the Bank of Lithuania; approve the rules of procedure of the Board;
13) apply to the financial market participants defined in Article 42(1) (hereinafter: ‘financial market participants under supervision’) the enforcement measures established by laws as well as the requirements, obligations, prohibitions and other mandatory measures established by the legislation regulating financial market;
14) decide on appealing to court regarding initiation of bankruptcy proceedings against financial market participants under supervision;
Version of subparagraphs 16 and 17 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in Article 122 (2) of the Treaty establishing the European Community:
16) establish the financial accounting policy of the Bank of Lithuania, approve a set of annual financial statements and the allocation of profit for the financial year;
Version of subparagraphs 16 and 17 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
16) in compliance with the requirements of the legal acts of the European Central Bank, establish the financial accounting policy of the Bank of Lithuania, approve a set of annual financial statements and the allocation of profit for the financial year, as established in Paragraph 3 of Article 23 of this Law;
17) establish procedures for the management, use and disposal of the assets of the Bank of Lithuania, following the main principle of achieving the objectives and carrying out the tasks of the European System of Central Banks using the most economical, effective and productive means, and establish procurement procedures;
18) resolve issues pertaining to the issuance of licenses, permits, consents, approvals, non-objections established by laws regulating the financial market as well as suspension of their validity, cancelation of suspension of their validity and revocation (termination of their validity);
19) take decisions as regards the disputes between the consumers and the financial market participants; and
Version of paragraph 2 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Version of paragraph 2 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
2. The Board of the Bank of Lithuania may authorise the Chairperson of the Board to carry out a part of its functions, except the functions provided for by subparagraphs 4, 6, 7, 9, 10, 12, 13, 14, 15, 16, 18 and 19 of Paragraph 1 of this Article.
Article 12. Dismissal of the Members of the Board of the Bank of Lithuania
1. The Chairperson of the Board of the Bank of Lithuania, Deputy Chairpersons and Members thereof shall be dismissed prior to the expiration of their term of office only if they do not fulfil the conditions required for the performance of their duties or they have been found guilty of serious misconduct.
2. A decision regarding the dismissal of the Chairperson of the Board of the Bank of Lithuania on the grounds provided for in Paragraph 1 of this Article shall be made by the Seimas of the Republic of Lithuania on the recommendation of the President of the Republic; a decision regarding the dismissal of Deputy Chairpersons and Members of the Board shall be made by the President of the Republic on the recommendation of the Chairperson of the Board of the Bank of Lithuania.
3. A decision regarding a dismissal shall be adopted within one month from the date of submission of the recommendation thereon to the Seimas of the Republic of Lithuania or the President of the Republic. In the event a decision is not adopted within the above time limit, the person in question shall continue to perform his or her duties.
4. The Chairperson of the Board of the Bank of Lithuania shall have the right to refer to the Court of Justice of the European Union a decision regarding his dismissal prior to the expiration of his term of office within two months from the announcement of the decision or from the receipt of the notification thereof or, if the above has not occurred, from the date when the decision became known to the plaintiff on the grounds that the decision was in breach of the Treaty on the Functioning of the European Union or any other legal provision related to the application of the above Treaty. The Deputy Chairpersons and the Members of the Board of the Bank of Lithuania shall have the right to appeal to Vilnius Regional Court against a decision regarding a dismissal prior to the expiration of their terms of office.
Article 13. Resignation of the Members of the Board of the Bank of Lithuania
1. The Chairperson of the Board of the Bank of Lithuania may resign from his or her post upon submitting a resignation request to the President of the Republic of Lithuania; Deputy Chairpersons and Members of the Board may resign upon submitting resignation requests to the Chairperson of the Board.
2. The resignation request submitted by the Chairperson of the Board shall be considered by the Seimas and requests of Deputy Chairpersons and Members of the Board shall be considered by the President of the Republic.
3. A decision regarding the resignation shall be adopted within one month from the date of receipt of a resignation request.
4. In the event a decision is not adopted during the time period indicated in Paragraph 3 of this Article, the Chairperson of the Board, Deputy Chairpersons and Members of the Board shall be considered to have resigned after one month from the day of filing such request.
5. In the event a decision to decline a request is adopted, the Chairperson of the Board, Deputy Chairpersons and Members of the Board shall be regarded to have resigned after one month from the date of the adoption of the above decision if they submit a request confirming their previous request within two weeks after the adoption of the decision to decline the request.
Article 14. Meetings of the Board of the Bank of Lithuania
1. Meetings of the Board of the Bank of Lithuania shall be held as necessary, but at least once a month. Procedures for the arrangement of Board meetings shall be established by the rules of procedure of the Board of the Bank of Lithuania.
2. Meetings of the Board of the Bank of Lithuania shall be considered valid if at least three members of the Board are present. Decisions of the Board shall be adopted by a majority of at least three votes.
3. Meetings of the Board of the Bank of Lithuania shall be presided over by the Chairperson of the Board or by one of the Deputy Chairpersons in accordance with the procedure established by the rules of procedure of the Board.
Article 15. Voting Right Restriction for the Members of the Board of the Bank of Lithuania
Where an issue considered during a meeting of the Board is related to the private interests of a Member of the Board, involving the conflict between public and private interests, the Member of the Board concerned shall, prior to the discussion of the above issue, present a written notice thereon and shall not have the right to participate in the discussion of the said issue and in the adoption of a decision thereon.
Article 16. Work Restriction to the Members of the Board of the Bank of Lithuania
1. The Chairperson, Deputy Chairpersons and Members of the Board of the Bank of Lithuania may only be employed at the Bank of Lithuania and may not engage in any other activities that would cause a conflict of private and public interests. The Board of the Bank of Lithuania may give them consent to engage in research and pedagogical activities.
2. The Chairperson, Deputy Chairpersons, and Members of the Board of the Bank of Lithuania must, during the first year after their duties have ceased, avoid any conflict of private and public interests that would be caused by their new activities. When intending to engage in the activities that the above-mentioned persons consider might cause a conflict of private and public interests, they shall inform in writing the Board of the Bank of Lithuania and shall seek its opinion before committing themselves.
*3. Upon the expiration of the term of office, the Chairperson, Deputy Chairpersons, and Members of the Board of the Bank of Lithuania shall be paid a severance pay. The pay shall amount to the number of the average monthly salaries, paid to them, corresponding to the years of their uninterrupted term of office at the Bank of Lithuania, but shall not exceed five average monthly salaries. The severance pay shall not be paid if they have stopped performing their duties because they have been found guilty of serious misconduct.
*Note: it shall be applied to the Chairperson of the Board of the Bank of Lithuania who commences his term of office on the day of the entry into force of this Law and afterwards as well as to Deputy Chairpersons and Members of the Board of the Bank of Lithuania appointed after the entry into force of this Law.
Article 17. Chairperson of the Board of the Bank of Lithuania
1. The Chairperson of the Board of the Bank of Lithuania shall:
2) represent the Bank of Lithuania in the Republic of Lithuania and abroad without any special power of attorney;
3) conclude employment contracts with staff members and heads of the branches, representative offices, institutions and enterprises of the Bank of Lithuania, provide incentives for distinguished employees and impose disciplinary penalties;
4) approve the distribution of duties between the Chairperson, Deputy Chairpersons and Members of the Board;
2. In the event of the absence of the Chairperson of the Board of the Bank of Lithuania, his or her duties shall be performed by one of the Deputy Chairpersons or one of the Members of the Board on a mandate from the Chairperson of the Board of the Bank of Lithuania.
3. The Chairperson of the Board of the Bank of Lithuania, his or her deputy or a Member of the Board shall have the right to attend sittings of the Government of the Republic of Lithuania in a deliberative capacity.
*4. The salary of the Chairperson of the Board of the Bank shall be equal to five average monthly salaries of the employees of monetary intermediation institutions announced by the Department of Statistics to the Government of the Republic of Lithuania.
*5. In order to finance expenses related to the representation both in Lithuania and abroad, every month the Chairperson of the Board of the Bank of Lithuania shall be granted a sum accounting for 15 percent of his or her salary without justifying expenses.
*Note: it shall be applied to the Chairperson of the Board of the Bank of Lithuania who commences his term of office on the day of the entry into force of this Law and afterwards.
Article 18. Staff of the Bank of Lithuania
1. The staff of the Bank of Lithuania shall perform the functions of the Bank of Lithuania laid down in this Law by implementing resolutions of the Board of the Bank of Lithuania and orders of the Chairperson, and by observing the regulations of a relevant structural division and employment contracts.
3. The staff of the Bank of Lithuania may only be employed at the Bank of Lithuania. Upon the consent of the Board of the Bank of Lithuania, they may also be employed elsewhere.
4. The Board of the Bank of Lithuania shall have the right to delegate a staff member for temporary work at the European Union and international institutions and bodies or institutions or bodies of another state at the request of the staff member and at its own initiative, subject to the consent of such staff member, without cancelling the employment contract and suspending the counting of the period of employment at the Bank of Lithuania, without changing the terms of remuneration set in the employment contract or by changing said terms by mutual agreement between the parties of the employment contract. At the request of the staff member and subject to the consent of the Board of the Bank of Lithuania, such staff member may take up employment for a certain period of time at the institutions and bodies mentioned herein by requesting for a leave of absence, without suspending the counting of the period of employment at the Bank of Lithuania.
5. The staff of the Bank of Lithuania may be granted financial services pursuant to the procedure and terms established by the Board of the Bank of Lithuania.
Article 181. Requirements for the Avoidance of a Conflict of Public and Private Interests Applicable to the Staff of the Bank of Lithuania
1. The Staff of the Bank of Lithuania must avoid engaging in the activities that would cause a conflict of public and private interests
2. The Board of the Bank of Lithuania, in ensuring the lawful interests of the Bank of Lithuania and in order to ascertain that the staff of the Bank of Lithuania avoid a conflict of public and private interests and do not use or allow the use by third parties of the information constituting a state, official and bank secret in their own or the third parties’ interests, may establish the kinds of information on personal and family financial operations to be disclosed by the Bank of Lithuania staff to the Bank of Lithuania, and may establish restrictions on entering into certain financial transactions or engaging in certain activities.
Article 19. Responsibility in Protecting Secrets
1. The staff of the Bank of Lithuania as well as other persons, who have been granted the right of access to the information constituting state, official and bank secrets or who have come into possession of such information without such a right, shall protect the information constituting state, official and bank secrets. This obligation shall continue to exist after the end of an employment relationship with the Bank of Lithuania or after the end of any other service or function related to the Bank of Lithuania.
Version of subparagraphs 2, 3 and 4 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
2. A secret of the Bank shall be information used in the activities of the Bank of Lithuania that does not constitute a state or official secret with respect to its significance, the illegal disclosure or loss of which could have negative consequences on the functioning of the Bank of Lithuania and its activities, and could harm legitimate interests of other persons.
3. Detailed lists of information constituting state, official and bank secrets shall be approved by the Chairperson of the Board of the Bank of Lithuania. Detailed lists of information constituting state and official secrets shall be approved and amended pursuant to the procedure laid down in the Republic of Lithuania Law on State and Official Secrets.
Version of subparagraphs 2, 3 and 4 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
2. A secret of the Bank shall be any non-public information related to the European System of Central Banks and any other information used in the activities of the Bank of Lithuania that does not constitute a state or official secret with respect to its significance, the illegal disclosure or loss of which could nevertheless have negative consequences on the functioning of the Bank of Lithuania and its activities, and could harm legitimate interests of other persons.
3. The Chairperson of the Board of the Bank of Lithuania shall approve detailed lists of information constituting state and official secrets. Detailed lists of information constituting state and official secrets shall be approved and amended in accordance with the procedure laid down by the Republic of Lithuania Law on State and Official Secrets.
4. Usage procedures in relation to information constituting a bank secret shall be approved by the Chairperson of the Board of the Bank of Lithuania.
Article 20. Capital of the Bank of Lithuania
Version of paragraph 2 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Version of paragraph 2 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
2. The authorised capital shall be EUR 60 million. It shall be accumulated from the funds of the State of Lithuania and (or) profit of the Bank of Lithuania.
Article 21. Budget of the Bank of Lithuania
The Bank of Lithuania shall plan its annual budget taking into account the needs related to the implementation of the objectives and functions, as well as its activities prescribed by this Law. The budget shall consist of operating expenses and investment in tangible and intangible assets.
Article 22. Profit (Loss) of the Bank of Lithuania
The profit (loss) of the Bank of Lithuania for the financial year shall be calculated by deducting expenses from income.
Article 23. Coverage of the Loss and Allocation of the Profit of the Bank of Lithuania
1. After the set of financial statements of the last ended financial year is approved in accordance with the procedure laid down by this Law, profit (loss) for that year and undistributed profit carried over from the previous financial periods shall be attributed to the net distributable profit (loss). Thereafter the net distributable profit shall be distributed or the net distributable loss shall be covered following the provisions established in this Article.
2. Net distributable loss shall be covered from the reserve capital of the Bank of Lithuania. When reserve capital is not sufficient to cover distributable loss, remaining uncovered losses are carried forward to be covered by the distributable profit of the succeeding financial years.
3. Net distributable profit shall be allocated in the following sequence:
2) from the excess remaining after the allocation under the subparagraph 1 herein, an amount shall be allocated to authorised capital up to the amount specified in Article 20 of this Law;
3) from the excess remaining after the allocation under the subparagraph 2 herein, an amount shall be allocated to reserve capital up to the amount, independently established by the decision of the Board of the Bank of Lithuania taking into account potential impact of risks however this capital shall be no less than five amounts of the authorised capital of the Bank of Lithuania;
4) from the excess remaining after the allocation under the subparagraph 3 herein, an amount shall be allocated to the State Budget as the profit contribution of the Bank of Lithuania. This contribution shall not exceed the amount corresponding to 70 per cent of the calculated average of the profit (loss) of the Bank of Lithuania of the last three financial years.
Article 24. Relation of the Bank of Lithuania to the State Budget
The contribution of the Bank of Lithuania shall be paid to the state budget once a year not later than by the 1st of May of the following year.
Title of Chapter 4 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
CHAPTER 4
MONETARY POLICY OF THE BANK OF LITHUANIA
Title of Chapter 4 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
CHAPTER 4
MONETARY POLICY
Version of Article 25 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 25. Instruments of Monetary Policy
When implementing its monetary policy the Bank of Lithuania shall choose and establish monetary policy instruments and the procedure for the application thereof.
Version of Article 25 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 25. Opening of Accounts and Instruments of Monetary Policy
1. The Bank of Lithuania, acting as an integral part of the European System of Central Banks, shall implement the defined monetary policy.
2. In order to conduct operations, the Bank of Lithuania may open accounts for credit institutions, public entities and other market participants and accept assets, including book entry securities, as collateral.
3. In accordance with general principles for open market and credit operations established by the European Central Bank, including the announcement of conditions under which it stands ready to enter into such transactions, the Bank of Lithuania may:
1) operate in the financial markets by buying and selling outright (spot and forward) or under repurchase agreement and by lending or borrowing claims and marketable instruments, whether in EU or in non-EU currencies, as well as precious metals;
Article 26. Rediscount Operations
1. The Bank of Lithuania, pursuant to the procedure and terms set forth by the Bank, shall have the right to rediscount bills of exchange and other debt instruments for credit institutions.
Article 26 shall be repealed on the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union.
Article 27. Loans of the Bank of Lithuania
1. The Bank of Lithuania, pursuant to the procedure, terms and conditions laid down by the Bank, shall have the right to make loans in Litas to credit institutions registered in the Republic of Lithuania that have their accounts at the Bank of Lithuania.
2. The loans made by the Bank of Lithuania shall be secured by the pledge of the following assets of a credit institution which obtains the loan:
Article 27 shall be repealed on the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union.
Article 28. Deposits at the Bank of Lithuania
The Bank of Lithuania, pursuant to the procedures and terms laid down by the Bank, shall have the right to accept deposits denominated in Litas from credit institutions registered in the Republic of Lithuania.
Article 28 shall be repealed on the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union.
Article 29. Open Market Operations
1. Open market operations shall be the operations initiated by the Bank of Lithuania to increase or decrease reserves in the banking system by concluding transactions with banks.
2. The Bank of Lithuania, pursuant to the procedures and terms set forth by the Bank, shall carry out the following open market operations:
1) purchase and sell in the secondary market debt instruments of the Government and other debt instruments specified by the Bank of Lithuania, and perform other operations with them;
2) issue and purchase its own debt securities and carry out other operations with the said instruments, and establish procedures for their issue and trading;
Article 29 shall be repealed on the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union.
Article 30. Required Reserves
1. The Bank of Lithuania shall have the right to require credit institutions to hold a part of their assets calculated on the basis of their liabilities as required reserves.
Article 30 shall be repealed on the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union.
Version of Article 31 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 31. Regulation of the Exchange Rate of the Litas
In order to implement its primary objective, the Bank of Lithuania shall establish the system for the regulation of the Litas exchange rate. Governed by this system, the Bank of Lithuania shall determine and announce an official Litas exchange rate against foreign currencies.
Version of Article 31 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 31. Setting and Publication of Exchange Rates Between the Euro and Foreign Currencies
1. The Bank of Lithuania shall publish in the Republic of Lithuania reference exchange rates between the euro and foreign currencies as published by the European Central Bank.
Article 32. Other Instruments of Monetary Policy
In order to implement its primary objective, the Bank of Lithuania may establish and apply other monetary policy instruments.
Article 32 shall be repealed on the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union.
Version of the title of Chapter 5 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
CHAPTER 5
FOREIGN RESERVES AND OPERATIONS WITH
FOREIGN FINANCIAL AND CREDIT INSTITUTIONS
Version of the title of Chapter 5 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
CHAPTER 5
FOREIGN RESERVES AND OPERATIONS
Version of Article 33 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 33. Foreign Reserves
The Bank of Lithuania shall manage, use and dispose of foreign reserves of the Bank of Lithuania with the view to implementing its primary objective and ensuring the reliability of the system for the regulation of the Litas exchange rate.
Version of Article 33 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 33. Foreign Reserves
The Bank of Lithuania shall manage, use and dispose of foreign reserves following the principles and procedure meeting the requirements of European Union law.
Article 34. The Structure of Foreign Reserves
Foreign reserves may be composed of:
Version of Article 35 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 35. Operations with Foreign Financial and Credit Institutions
1. In performance of its functions, the Bank of Lithuania shall have the right to conduct the following operations with foreign central banks, foreign and international financial and credit institutions:
Version of Article 35 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 35. Operations of the Bank of Lithuania
1. In performance of its functions, the Bank of Lithuania shall have the right to conduct the following operations:
Version of Article 36 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 36. Settlement Agreements
The Bank of Lithuania may, on its own behalf or, according to an agreement with the Government of the Republic of Lithuania, on its behalf enter into settlement agreements with foreign public and (or) private institutions.
Version of Article 36 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 36. Settlement Agreements
The Bank of Lithuania may enter into settlement agreements with foreign public and/or private institutions.
Article 37. Restriction of the Right to Lend and Prohibition of Privileged Access
1. Overdrafts or any type of credit facility with the Bank of Lithuania in favour of the institutions or bodies of the European Union, central governments, regional, local or other State government and administration institutions, other bodies governed by public law, or State and municipal undertakings of the Republic of Lithuania and any other Member States shall be prohibited, as shall the purchase directly from them by the Bank of Lithuania of debt instruments. These prohibitions shall not apply to credit institutions belonging to the State or public institutions by the right of ownership which, in the context of the supply of reserves by the European Central Bank and the national central banks of the Member States, shall be given the same treatment as private credit institutions.
2. The Bank of Lithuania may not provide refinancing to the financial liabilities assumed by the European Union, its institutions and bodies, the Member States of the European Union, other subjects of public law or credit institutions on behalf of the subjects of law specified in this paragraph, with the exception where such refinancing is provided in the legal acts of the European Union.
Article 37 shall be repealed on the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union.
Version of Article 38 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 38. Opening of Accounts for State Bodies
The Bank of Lithuania shall have the right to open and manage treasury accounts of the Republic of Lithuania, and accounts of state funds established by laws or resolutions, in Litas and (or) foreign currency.
Version of Article 38 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 38. Opening of Accounts for State Treasury
The Bank of Lithuania shall have the right to open and manage the accounts of the State Treasury of the Republic of Lithuania.
Article 39. Operations with Government Securities
On the basis of an agreement with the Ministry of Finance, the Bank of Lithuania may organise the issue and redemption of Government securities and the payment of interest thereon.
Article 40. Administration of the National Debt
On the basis of an agreement with the Ministry of Finance, the Bank of Lithuania may administer the national debt.
Article 41. Consulting the Government
The Bank of Lithuania may consult and give proposals to the Government on the issues related to financial markets, including its regulation, and State Treasury policy.
Article 42. Aim, Functions, Rights and Obligations of the Bank of Lithuania in Performance of the Financial Market Supervision
1. The financial market participants under supervision are: banks; branches of foreign banks established in the Republic of Lithuania; Central Credit Union; credit unions; insurance companies; reinsurance companies; branches of foreign insurance and reinsurance companies established in the Republic of Lithuania; insurance brokerage firms and branches of foreign insurance and reinsurance intermediaries established in the Republic of Lithuania; e-money institutions; intermediaries of e-money institutions and branches of foreign e-money institutions established in the Republic of Lithuania; financial broker companies; financial advisory companies; operators of the regulated market; management companies; investment companies; depositories; branches of foreign financial broker companies and managements companies established in the Republic of Lithuania; pension associations; investment holding companies and issuers; payment institutions and intermediaries of payment institutions; consumer credit providers and intermediaries of consumer credit; operators of the payment and securities settlement systems.
2. In supervision of how the financial market participants comply with the requirements set in legal acts regulating the financial market, the Bank of Lithuania shall:
1) perform the supervision of banks, branches of foreign banks established in the Republic of Lithuania, Central Credit Union, credit unions and fulfil other functions assigned to the Bank of Lithuania by the Law on Banks, the Law on the Central Credit Union and the Law on Credit Unions;
2) perform the supervision of insurance companies, reinsurance companies, branches of foreign insurance and reinsurance companies established in the Republic of Lithuania, insurance brokerage firms and branches of foreign insurance and reinsurance intermediaries established in the Republic of Lithuania and fulfil other functions assigned to the Bank of Lithuania by the Law on Insurance;
3) perform the supervision of e-money institutions, intermediaries of e-money institutions and branches of foreign e-money institutions established in the Republic of Lithuania and fulfil other functions assigned to the Bank of Lithuania by the laws regulating the activities of these entities;
4) perform the supervision of financial brokerage companies, financial advisory companies, operators of regulated markets, management companies, investment companies, depositories, branches of foreign financial brokerage companies and management companies established in the Republic of Lithuania, pension associations, investment holding companies and issuers and fulfil other functions assigned to the Bank of Lithuania by the Law on Markets in Financial Instruments, Law on Securities, Law on Collective Investment Undertakings, Law on Supplementary Voluntary Pension Accumulation, Law on Pension Accumulation, Law on Occupational Pension Accumulation, Law on Investment Holding Companies;
5) perform the supervision of payment institutions and intermediaries of payment institutions and fulfil other functions assigned to the Bank of Lithuania by the Law on Payment Institutions;
6) fulfil the functions assigned to the Bank of Lithuania by the Law on Financial Institutions, Law on the Supplementary Supervision of Entities in a Financial Conglomerate, Law on the Prevention of Money Laundering and Terrorist Financing, Law on Payments and other laws;
7) perform the supervision of consumer credit providers and consumer credit intermediaries and fulfil other functions assigned to the Bank of Lithuania by the Law on Consumer Credit;
3. In performance of the financial market supervision, the Bank of Lithuania shall have the right to:
1) adopt legal acts and recommendations regarding the activities and supervision of the financial market participants under supervision;
2) receive information necessary for the performance of the supervisory function from state institutions, financial market participants under supervision as well as from other enterprises, institutions and organisations;
3) inspect (examine) financial market participants under supervision and in the cases established by laws – other persons as well;
4) in the cases and manner established by laws, apply enforcement measures against financial market participants under supervision and other persons;
4. The Bank of Lithuania shall provide consultations on the competence of the supervision performed by the Bank of Lithuania and shall undertake other preventive actions established in the Law on Public Administration and other legal acts to prevent the potential breach of the legal acts.
Article 43. Protection of the Information Received for the Purposes of the Financial Market Supervision
To protect the information received by the Bank of Lithuania for the purpose of the financial market supervision, the provisions of Article 19 of this Law and of the laws regulating the financial market shall apply.
Article 44. Financing of the Financial Market Supervision Performance
1. Performance of the financial market supervision shall be financed from the contributions by financial market participants under supervision to the Bank of Lithuania and from other funds of the Bank of Lithuania.
2. Financial market participants under supervision subject to obligation to pay contributions, the base for the calculation of contributions and the maximum amounts of contributions shall be set in Annex 1 to this Law. The level of contributions for a particular year shall be established by the Bank of Lithuania following consultation with the financial market participants under supervision. The level of contributions shall be set taking into consideration the functions fulfilled by the Bank of Lithuania and expenditure incurred in respect of financial market participants under supervision as well as activity volumes of financial market participants under supervision and the level of risk assumed by them. The detailed methodology of the calculation of contributions and their payment procedure shall be established by the legal acts of the Bank of Lithuania.
3. If the sum of contributions paid by the financial market participants under supervision during a particular year is higher than the expenditure of the Bank of Lithuania, planned for the financial market supervision of that year, the Bank of Lithuania shall correspondingly reduce the contributions of financial market participants under supervision planned for the next year, and shall use the surplus for the financing of the financial market supervision of the next year.
4. Financial market participants under supervision must transfer contributions to the account of the Bank of Lithuania every quarter, not later than before the 30th day of the first month of a subsequent quarter. For the overdue term to pay contributions financial market participants under supervision must transfer penalties to the account of the Bank of Lithuania amounting to 0.05% of the outstanding amount for every day. Payment of penalties shall not exempt from the obligation to pay the full amount of delay.
5. By the decision of the Bank of Lithuania the outstanding contributions and penalties shall be exacted without suing for claims (without personal order to withdraw the funds) from cash funds of the financial market participant under supervision in his accounts with the Bank of Lithuania, credit or payment institutions. By the decision of the Bank of Lithuania the outstanding contributions and penalties can also be exacted from the assets of the other financial market participant under supervision. In the latter case the decision is enforced by the bailiffs following the procedure established by the Code of Civil Procedure of the Republic of Lithuania.
Article 45. Reimbursement for the Damage Caused by the Illegal Actions of the Bank of Lithuania or Bank of Lithuania Staff, and Compensation of Expenses Incurred by Bank of Lithuania Staff in Relation to Proceedings or Actions Brought Against Them
1. The damage caused by the illegal actions of the Bank of Lithuania or Bank of Lithuania staff in relation to the performance of the financial market supervision shall be reimbursed only in the case if the person to have suffered the damage proves the Bank of Lithuania or Bank of Lithuania staff guilty of such damage.
2. The Bank of Lithuania shall pay a compensation to its current or former staff equal to their expenses incurred due to criminal or administrative actions brought against them or due to other actions taken by law enforcement institutions in relation to such acts or omissions, or due to civil actions brought against them in relation to their acts or omissions done in the course of official duty related to the performance of financial market supervisory. The reimbursement procedure shall be established by the Board of the Bank of Lithuania.
3. A member or former member of the staff of the Bank of Lithuania must repay the compensation paid by the Bank of Lithuania as provided by paragraph 2 herein in the following cases:
1) when he or she, following the settlement of criminal or administrative actions against him or her, is found guilty of criminal act or violation of administrative law or is found guilty by the court of causing damage;
2) when the expenses incurred by him or her and the legal charges he or she is awarded are paid by the party ordered to pay the charges. If the sum of legal charges ordered by the court and paid to him or her is lower than the compensation, the amount to be repaid shall be equal to the sum paid by the party ordered to pay the charges.
Article 46. Cooperation with Financial Market Supervision Authorities of Other States
The Bank of Lithuania shall have the right to conclude agreements on cooperation in the area of financial market supervision with the institutions of other states performing the financial market supervision, the European Banking Authority, the European Insurance and Occupational Pensions Authority, the European Securities and Markets Authority and other institutions of the Republic of Lithuanian and foreign countries.
Article 47. Settlement of Disputes between Consumers and Financial Market Participants Out of Court
1. The Bank of Lithuania shall settle disputes between the consumers listed in paragraph 2 of this Article (hereinafter: ‘consumers’) and providers of insurance, financial and (or) additional investment services, which arise from the provision of financial and (or) additional investment services and the insurance service contract or related thereto, in case the law of the Republic of Lithuania applies to such a contract. The Bank of Lithuania shall also settle the disputes between consumers – participants of collective investment entities and pension funds established in Lithuania – and managers of these entities and funds, which arise from the relations of participation in an appropriate entity or fund, as well as disputes between investors and issuers, who perform the primary securities issue on their own, arising from the relations of securities circulation. Hereinafter the services mentioned in this Article are referred to as ‘financial services’, and the providers of these services – as ‘financial market participants’.
2. For the purposes of this Article, the consumer shall be a natural person:
1) concluding the financial services contract with the financial market participant, except for professional clients, to meet personal, family or household needs;
2) the insured, beneficiary, aggrieved third person or other person, in case the financial services are aimed at their personal, family or household needs, while the financial market participant at the moment of the conclusion of the contract was aware or had to be aware about the purpose of financial services;
3) whose rights and obligations in respect of the financial market participant are related to the financial services contract, even if he is not the financial service contractual party, provided that in the relations with the financial market participant such a person has no aims related to business or professional activities.
3. The consumer, who considers that the financial market participant has violated his rights or legitimate interests in contractual or related relations, shall have the right to appeal to the court or to the Bank of Lithuania, which is an institution of preliminary dispute settlement out of court. The appeal to the Bank of Lithuania shall not deprive the consumer from the right to appeal to the court.
4. The consumer, who considers that the financial market participant has violated his rights or legitimate interests in contractual or related relations, and intends to appeal to the Bank of Lithuania regarding the dispute arisen, prior to appealing to the Bank of Lithuania must contact the financial market participant in writing indicating the dispute’s circumstances and his claim. The financial market participant must investigate the consumer's application and provide the consumer with the motivated reply regarding his claim not later than within 30 calendar days after receipt of the consumer's application, if other laws do not provide otherwise. The financial market participants shall investigate the consumers' applications unrequitedly.
5. If the reply from the financial market participant does not satisfy the consumer, he shall have the right to appeal to the Bank of Lithuania within 3 months after the receipt of the financial market participant's reply; the appeal shall concern the same subject matter of the dispute. If the financial market participant does not respond to the consumer within the term provided for in paragraph 4, the consumer shall have the right to appeal to the Bank of Lithuania regarding the dispute settlement within 3 months upon the expiry of this term. The detailed requirements for the form and contents of the consumer's appeal to the Bank of Lithuania shall be established by the Board of the Bank of Lithuania.
6. The Bank of Lithuania shall settle the disputes between consumers and financial market participants unrequitedly.
7. The Bank of Lithuania shall refuse to settle the dispute between the consumer and the financial market participant in case:
2) there is an agreement made between the consumer and the financial market participant on transferring the dispute settlement to the arbitration in order to settle it by intermediation, reconciliation or other alternative dispute settlement methods;
3) dispute is settled (was settled) by the arbitration in applying intermediation, reconciliation or other alternative dispute settlement methods;
6) consumer appealed to the Bank of Lithuania later than within the term set in paragraph 5 of this Article or did not contact the financial market participant as set in paragraph 4;
7) consumer’s appeal does not correspond to the requirements for the form and contents of the appeal as established by the legal acts adopted by the Bank of Lithuania and such deficiencies were not eliminated within the term indicated by the Bank of Lithuania;
8. The Bank of Lithuania shall usually settle disputes between consumers
and financial market participants under the written procedure in accordance with the
evidence provided to it.
9. The dispute between the consumer and the financial market participant shall be
settled within 2 months after the receipt in the Bank of Lithuanian of the consumer's appeal which meets the requirements set to an appeal. In particular cases, taking into consideration the dispute complexity, the Bank of Lithuania shall have the right to extend this term, but not more than for 2 additional months.
10. Articles 163, 164, 166, 167, 293 and 294 of the Code of Civil Procedure of the Republic of Lithuania shall mutatis mutandis apply to the suspension and termination of the dispute settlement in the Bank of Lithuania.
11. The Bank of Lithuania must intermediate to ensure that the parties in dispute reach a mutually satisfactory agreement if, taking into consideration the dispute circumstances, a peaceful agreement is possible. In case of failure to reach such an agreement, the Bank of Lithuania shall take the decision regarding the merits of the dispute. The Bank of Lithuania shall take one of the following decisions regarding the merits of the dispute:
12. In taking the decision the Bank of Lithuania may, whenever possible, express its opinion about the damage to be reimbursed to the consumer. In taking the decision, by which the consumer's claims are satisfied fully or in part, the Bank of Lithuania shall set the term within which the financial market participant is recommended to take actions indicated in the decision. The Bank of Lithuania shall publish the information on the financial market participants who do not implement the decisions of the Bank of Lithuania on its website.
13. The decision of the Bank of Lithuania shall be of the nature of recommendation and shall not be appealed to court.
14. The material of dispute cases investigated by the Bank of Lithuania shall be considered confidential information and shall not be provided to third persons, except for the cases established by laws. The Bank of Lithuania shall make public the summarised information on the nature of disputes settled, decisions taken and their implementation state.
15. The consumer’s appeal to the Bank of Lithuania for the settlement of dispute, filled following the requirements established in this Article, shall suspend the running of the prescriptive limit to appeal to the court.
Article 48. The Financial Year of the Bank of Lithuania
The financial year of the Bank of Lithuania shall begin on the first day of January and end on the thirty-first day of December.
Version of Article 49 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 49. Financial Accounting and A Set of Annual Financial Statements
1. The Bank of Lithuania shall manage its financial accounting and prepare a set of annual financial statements (a balance-sheet, profit (loss) statement, and explanatory notes) following the recommendations of the European Central Bank for central banks participating in the European System of Central Banks.
Version of Article 49 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 49. Financial Accounting and A Set of Annual Financial Statements
1. The Bank of Lithuania shall manage its financial accounting and prepare a set of annual financial statements (a balance-sheet, profit (loss) statement, and explanatory notes) as well as other financial statements in accordance with the legal acts, guidelines and instructions of the European Central Bank regulating the accounting and reporting of operations undertaken by the national central banks.
2. The annual financial statements of the Bank of Lithuania shall comprise a balance-sheet, profit (loss) statement, and explanatory notes.
Version of Article 50 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 50. Audit of Sets of Annual Financial Statements of the Bank of Lithuania
The annual audit of the Bank of Lithuania shall be carried out by an audit company selected by the Bank of Lithuania.
Version of Article 50 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 50. Audit of the Annual Financial Statements of the Bank of Lithuania
The audit of sets of annual financial statements of the Bank of Lithuania shall be carried out by independent external auditors selected by the Bank of Lithuania and approved by the Council of the European Union upon the recommendation of the European Central Bank.
Article 51. Annual Report of the Bank of Lithuania
The Bank of Lithuania shall make its annual report public and issue it as a separate publication. The annual report shall provide information on basic tasks regarding monetary policy and their implementation, monetary policy operations, activities while performing the financial market supervision and discharging other functions established by laws, as well as information on the national macroeconomic situation, such as analysis of the developments in the national economy and financial markets, and on the financial position of the Bank and the results of its activities.
Article 52. Reports by the Chairperson of the Board of the Bank of Lithuania on the Implementation of the Primary Objective
The Chairperson of the Board of the Bank of Lithuania shall twice a year present reports to the Seimas on the implementation of the primary objective of the Bank, the situation of the financial market and the performance of its functions.
Article 53. Recovery of Funds and Securities from Borrowers Failing to Fulfil their Obligations
1. The Bank of Lithuania shall have the right to debit, without an instruction of a financial institution, funds from the accounts of the said financial institution if it fails to fulfil its obligations to the Bank of Lithuania in due time specified in the Bank of Lithuania legal acts and contracts.
2. In the event bankruptcy proceedings are initiated against a financial institution or a decision is made concerning the prohibition to dispose of funds, the Bank of Lithuania shall have the right to use without a decision of the court or any other authorised institution, the funds from the accounts of the financial institutions held at the Bank of Lithuania in order to fulfil its financial obligations to the Bank of Lithuania.
Version of paragraph 3 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
3. In the event the borrower fails to fulfil its obligations on the date specified in an agreement, and the performance of the said obligations has been secured by a pledge of securities or any financial assets other than the funds on the borrower’s bank account, the Bank of Lithuania shall have the right to take over and realise the pledged assets in the manner prescribed by legal acts. The Bank of Lithuania may exercise such a right even if bankruptcy proceedings are initiated against the borrower or the prohibition on disposal of pledged assets is imposed on him.
Version of paragraph 3 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 53. Recovery of Funds and Securities from Borrowers Failing to Fulfil their Obligations
3. In the event that a borrower fails to fulfil its obligations on the date specified in the agreement, and the performance of said obligations has been secured by a financial collateral (collateral), the Bank of Lithuania shall have the right to take over the provided financial collateral (collateral) and realise it in the manner prescribed by legal acts. The Bank of Lithuania may exercise such a right even if bankruptcy proceedings have been initiated against the borrower or a prohibition on the disposal of the financial collateral (collateral) has been imposed.
Version of Article 54 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 54. Information to the Bank of Lithuania
Bodies of state authority and administration, enterprises, institutions and organisations of the Republic of Lithuania must present to the Bank of Lithuania all information required for the performance of its functions.
Version of Article 54 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 54. Receipt and Provision of Information
1. State and municipal institutions and economic entities shall provide the Bank of Lithuania with information required for the performance of its functions.
2. The Bank of Lithuania may provide information to the European Central Bank, central banks of the states of the European Union, international monetary and financial institutions, state and municipal institutions, if such information is required for the performance of their functions and if such provision of information is not prohibited by this and other laws of the Republic of Lithuania. This prohibition shall not be applicable to the provision of statistical information to the European Central Bank, to which the confidentiality procedure established in Article 8 of the Council Regulation (EC) No. 2533/98 of 23 November 1998 concerning the collection of statistical information by the European Central Bank shall be applicable.
Version of Article 541 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 541. Sanctions for Non-Compliance with Statistical Obligations
The Bank of Lithuania shall have the right to impose fines and penalties on financial institutions for infringements with regard to submission of statistical information as established by the Bank of Lithuania. The size of fines and penalties, arrangements for their application and the terms for the storage of related material shall be determined by the Bank of Lithuania taking into account the fact that the sanctions have to be objectively justified, non-discriminatory and shall correspond to the aim pursued and the character of the infringement.
Version of Article 541 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 541. Sanctions for Non-Compliance with Statistical Obligations
The Bank of Lithuania shall have the right to impose fines and penalties on economic entities for infringements with regard to submission of statistical information as established by the Bank of Lithuania for the performance of the functions of the Bank of Lithuania that are not related to the activities of the European System of Central Banks and also the functions that are related to the activities of the European System of Central Banks, if the procedure of sanctions of the European Central Bank is not applied to such infringements. The size of fines and penalties, arrangements for their application and the terms for the storage of related material shall be determined by the Bank of Lithuania.
Version of Article 55 until the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 55. Publication of the Data of the Bank of Lithuania
The Bank of Lithuania shall at least once a month issue information bulletins on the situation in the money and financial markets.
Version of Article 55 from the date on which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union:
Article 55. Publication of Information
The Bank of Lithuania shall at least once a month publish statistical and other information.
Article 56. Aspects of the Formation of the Reserve Capital
When this Law comes into force, the general reserve accumulated by the Bank of Lithuania shall be transferred to the reserve capital.
Article 58. Distribution of the Profit of the Bank of Lithuania Earned in the Year 2000
1. The profit of the Bank of Lithuania earned in the year 2000 shall be distributed in the following manner:
PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS
Annex 1
to the Law of the Republic of Lithuania on the Bank of Lithuania
FINANCIAL MARKET PARTICIPANTS PAYING CONTRIBUTIONS, CONTRIBUTION BASE AND MAXIMUM CONTRIBUTIONS
| No. |
Market participants |
Contribution base |
Maximum level of contributions |
| 1. |
Credit institutions; branches of foreign banks licensed in the countries other than EEE countries, established in the Republic of Lithuania |
Average annual assets |
0,017 % |
| 2. |
Branches of foreign banks licensed in the EEE countries, established in the Republic of Lithuania |
Average annual assets |
0,0057 % |
| 3. |
Consumer credit providers except credit institutions and their branches in the Republic of Lithuania |
Average annual assets |
0,0085 % |
| 4. |
E-money institutions, branches of e-money institutions licensed in the countries other than EEE countries, established in the Republic of Lithuania |
Average annual rate of outstanding e-money and average annual turnover of payment services |
0,01 % |
| 5. |
Branches of e-money institutions licensed in the EEE countries, established in the Republic of Lithuania |
Average annual rate of outstanding e-money and average annual turnover of payment services |
0,005 % |
| 6. |
Payment institutions |
Average annual turnover of payment services |
0,01 % |
| 7. |
Branches of payment institutions licensed in the EEE countries, established in the Republic of Lithuania |
Average annual turnover of payment services |
0,005 % |
| 8. |
Insurance companies; reinsurance companies; branches of insurance and reinsurance companies licensed in the countries other than EEE countries, established in the Republic of Lithuania |
Insurance and reinsurance premiums signed in the Republic of Lithuania |
0,26 % |
| 9. |
Branches of insurance and reinsurance companies licensed in the EEE countries, established in the Republic of Lithuania |
Insurance and reinsurance premiums signed in the Republic of Lithuania |
0,13 % |
| 10. |
Financial brokerage companies |
Annual income |
0,3 % |
| 11. |
Branches of financial brokerage companies licensed in other EEE countries, established in the Republic of Lithuania |
Annual income |
0,15 % |
| 12. |
Management companies, investment companies with variable capital; closed-type investment companies and branches of these companies established in the Republic of Lithuania |
Managed assets of the collective investment entities and additional voluntary pension accumulation funds |
0,05 % |
| 13. |
Operator of the regulated market |
– |
LTL 75 000 |
| 14. |
Central Securities Depository |
– |
LTL 100 000 |
| 15. |
Issuers, equity securities of which are traded on the regulated market in the Republic of Lithuania and (or) in other EEE country Member State, and the supervision of which is performed by the Bank of Lithuania |
– |
LTL 3 000 |
| 16. |
Issuers, non-equity securities of which are traded on the regulated market in the Republic of Lithuania and (or) in other EEE country Member State, and the supervision of which is performed by the Bank of Lithuania |
– |
LTL 1 500 |
| 17. |
Insurance brokerage companies |
– |
LTL 1 500 |
| 18. |
Financial advisory companies |
– |
LTL 1 500 |
IMPLEMENTED LEGAL ACTS OF THE EUROPEAN UNION
1. Treaty establishing the European Community of 25 March 1957, as last amended by the Lisbon Treaty of 17 December 2007 (OJ 2007 C 306, p. 1).
2. Protocol No. 18 of 7 February 1992 on the Statute of the European System of Central Banks and of the European Central Bank annexed to the Treaty establishing the European Community, as last amended by the Lisbon Treaty of 17 December 2007 (OJ 2007 C 306, p. 1).
3. Council Regulation (EC) No. 3603/93 of 13 December 1993 specifying definitions for the application of the prohibitions referred to in Articles 104 and 104b (1) of the Treaty (OJ 2004 special edition, Chapter 10, volume 1, p. 27).
4. Council Regulation (EC) No. 3604/93 of 13 December 1993 specifying definitions for the application of the prohibition of privileged access referred to in Article 104a of the Treaty (OJ 2004 special edition, Chapter 10, volume 1, p. 30).
5. Council Regulation (EC) No. 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro against counterfeiting (OJ 2004 special edition, Chapter 19, volume 4, p. 152), as last amended by Council Regulation (EC) No. 44/2009 of 18 December 2008 (OJ 2009 L 17, p. 1).
6. Council Regulation (EC) No. 1339/2001 of 28 June 2001 extending the effects of Regulation (EC) No. 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro against counterfeiting to those Member States which have not adopted the euro as their single currency (OJ 2004 special edition, Chapter 19, volume 4, p. 157).
The Annex to the Law shall be supplemented with Paragraph 7 on the date with effect from which the Council of the European Union abrogates the derogation of the Republic of Lithuania according to the procedure laid down in the first sentence of paragraph 1 and the first indent of paragraph 2 of Article 140 of the Treaty on the Functioning of the European Union: