"In that respect, I would very seriously think – together with the government – about the establishment of a state commercial bank. In the existing situation, this alternative shouldn't be a taboo," Nauseda said in an interview with the delfi.lt news website.

"I think we could start discussions on ways to establish a state commercial bank in Lithuania," he added.

Nauseda also believes the proposed banking asset tax could be moved onto interest rates.

The Lithuanian government is now proposing introducing a 0.03 monthly rate tax on assets exceeding 300 million euros of banks, credit unions and other loan issuers as of next year.

Revenue from such a tax is already included into the 2020 state budget bill, estimated to stand at around 50-60 million euros.

But the Association of Lithuanian Banks says the proposed tax runs counter to the country's Constitution.

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