In the opinion of Mantas Janavičius, member of the board of the Investors Association and chairman of the board of the credit union “Magnus”, the latter initiative should be evaluated primarily as a successful marketing move to name the Government Savings Bonds (VTL) in a different way.
According to the expert, until now it was not a very popular investment tool, but today’s message spread by the Government and its increasing awareness allow us to expect more optimistic forecasts.
“A non-professional investor may have questions, where will my money go, what will be done with it?” In the past, it was not usually indicated to whom the state was borrowing. And now it is very clearly named and defined: so that we can receive soldiers, have our own division and so on. Therefore, a person who lends money to the state can realize that this way not only encourages a bit of patriotism, but also contributes to a specific goal”, said the financier.
It is no less important that the simplicity of the process itself has been taken care of.
According to M. Janavičius, in addition to the fact that people are motivated by transparency and clarity, it is equally important that the simplicity of the process itself has been taken care of: in a specially designed www.gynybosfondas.lt Buying defense bonds on the website is virtually a click away.
Although today there are still discussions as to why exactly 2 percent was proposed. yield coupon, finally – not tied to the average interbank interest rate (EURIBOR), according to the expert, these are not essential issues.
“I would say that if we evaluate through the prism of patriotism, any number on the coupon is already an incentive. This is not a donation – it is a loan to the state, the government will repay that money and also pay a certain return. Accordingly, if defense bonds collect even 1 euro more per year than VTL used to collect, we can already talk about a considerable achievement”, said M. Janavičius, the representative of the Investors’ Association.
As the Ministry of Finance reminds, the goal of the Defense Fund, which started operating this month, is to increase the country’s defense financing to 3 percent. gross domestic product (GDP) for the long term, providing for additional sustainable sources of financing.
The goal of the Defense Fund, which started operating this month, is to increase the country’s defense funding to 3 percent.
Revenues from taxes – part of the profit, excise taxes, the allocation of independent revenues of municipalities to civil safety and the Solidarity contribution extended for a year – will reach the fund from 2025.
It was unanimously agreed that 3 percent is needed for the country’s essential defense needs. GDP financing, and all other needs that exceed 3 percent. GDP limit – agreed to be implemented by creating more convenient support opportunities and borrowing through defense bonds. Suggestions from the public and political parties are taken into account, and a tool has been created to directly support defense funding. Defense bonds can be purchased by both people, businesses, and organizations and thus contribute to the support of state defense.
New issues of defense bonds are planned from November 4 to 18. and from December 2 to 16
You can easily and conveniently make a voluntary contribution to the Defense Fund – with just a few clicks www.gynybosfondas.lt after making a bank transfer, card payment or creating a recurring payment.
Photo of partners/Illustration
The funds of the Defense Fund will be allocated to the acquisition of weapons, equipment and ammunition necessary to develop the capacity of a division-level military unit, the development of the infrastructure needed by the German brigade in Lithuania, the acquisition and development of countermobility measures, military mobility and dual-purpose (civilian and military) transport infrastructure projects, and Crisis Management and for the strengthening and development of civil protection provided for in the law on civil protection.
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#Financial #expert #defense #bonds #collect #euro #year #VTL #collect #talk #considerable #achievement #Business
**Interview with Mantas Janavičius, Member of the Board of the Investors Association**
**Interviewer:** Thank you for joining us today, Mantas. The recent initiative to rebrand and reintroduce Lithuanian Government Savings Notes has generated a lot of discussions. How would you assess this move?
**Mantas Janavičius:** Thank you for having me. I see this primarily as a successful marketing strategy. By naming them Government Savings Bonds (VTL), it’s important to highlight that the previous notes were underappreciated by investors. Now, with the government actively promoting these bonds, we can expect a more optimistic reception.
**Interviewer:** You mentioned that these bonds haven’t been very popular in the past. What do you think has changed?
**Mantas Janavičius:** The government’s emphasis on transparency is crucial. People often wondered about the purpose of their investments; now, it’s clearly outlined. For instance, funds raised will support our defense, which resonates deeply with national interests and can stir a sense of patriotism among investors.
**Interviewer:** That’s a great point. So, there’s an aspect of national pride tied to these bonds?
**Mantas Janavičius:** Absolutely. When individuals invest, they’re not just lending money; they’re contributing to a cause — in this case, strengthening our national defense. This connection can motivate more people to participate.
**Interviewer:** In terms of accessibility, how does the process of purchasing these bonds look?
**Mantas Janavičius:** The government has certainly made strides in simplifying the buying process. Thanks to the designated website, www.gynybosfondas.lt, purchasing bonds is now just a few clicks away. This ease of access is expected to attract a broader audience.
**Interviewer:** There’s been some discussion about the offered 2 percent yield. Do you believe this is sufficient?
**Mantas Janavičius:** It’s a nuanced topic. While it’s not linked to the interbank interest rate, from a patriotic perspective, any yield that means supporting our defense is worthwhile. If these bonds bring in even slightly more than previous offerings, that’s a significant achievement.
**Interviewer:** What’s the broader goal behind these bond issues?
**Mantas Janavičius:** The aim is to increase defense funding to 3 percent of our GDP. This sustainable financing model will come from diverse sources, including taxes and other revenue streams. The bond initiative allows citizens, businesses, and organizations to contribute directly to this crucial cause.
**Interviewer:** Thank you, Mantas, for your insights. It will be interesting to see how the public reacts to this new initiative moving forward.
**Mantas Janavičius:** Thank you for having me! I’m optimistic about the potential impact of these bonds on both our economy and national security.