Many have been shocked by the two-year-long Russian war against Ukraine. Millions of Ukrainians lost their homes and property while fleeing it. And after arriving in Lithuania, many experienced difficulties trying to use their savings.
Both in our country and in foreign countries, there are occasional reflections that it is only a matter of time when the Kremlin regime will take further aggression and try to attack the Baltic countries or Poland.
Lithuanians keep over 22,9 billion in national banks. euro deposits. In the event of a war, it would hardly be possible to clear them all quickly and take them with you when fleeing from the threat.
So maybe it is possible to open an account in a foreign bank while in Lithuania and keep at least part of the money in it?
You need to live or have a business abroad
The two largest commercial banks in Lithuania are Swedish "Swedbank" and SEB. Lithuanians keep most of their money in them.
However, if you decide to go to your Lithuanian bank and ask to open an account in a bank of the same name in Sweden, it would not be easy.
Daiva Taučkėlaitė, the public relations representative of "Swedbank" in Lithuania, assured that the specialists of the bank she represents do not notice the increased interest of residents in opening an account outside Lithuania.
D. Taučkėlaitė did not directly answer whether and under what conditions Lithuanian customers of Swedbank could open an account in this bank in Sweden.
"Usually, in order to open an account in another EU country, you need to prove your connection with that country, such as permanent residence, employment relationship in that country or other form of professional or business relationship.
This is necessary for the prevention of money laundering and other risks. Taking into account the fact that when such a connection is established, individuals usually reside in that country, so they can directly apply to banks or other payment institutions operating in that country," commented the representative of Swedbank.
According to her, in certain cases, clients who are expanding their business to other countries are given the opportunity to open an account in some jurisdictions where banks of the Swedbank group operate.
"Usually, accounts in foreign countries are opened for business clients carrying out international activities, who need accounts to perform direct business functions in the chosen country", explained D. Taučkėlaitė.
Some do not open, others hope that they will not need help
SEB's media representative Ieva Dauguvietytė-Daskevičienė stated that the bank she represents in Lithuania is a separate legal entity.
"We do not provide mediation services for opening an account to private clients in SEB branches abroad," the bank's representative informed.
Bank "Revolut" also has a lot of deposits, which, among other things, also operates in Great Britain, where many Lithuanian emigrants live, to whom, apparently, many would travel in the event of a threat of war.
Akvilė Adomaitytė, the head of communications for the Baltic countries of this bank, hoped that no unrest would start in Lithuania and that issues such as opening accounts abroad would never be relevant.
"We serve our customers all over Europe, in some countries we also offer local accounts, so in the event of force majeure, we would provide such an opportunity to Lithuanians as well.
For example, war in Ukraine at the beginning, seeing that Ukrainians fleeing their country faced, among many other challenges, obstacles in accessing their money, we very quickly made it possible to open an account with us so that people would have quick and easy access to their money. We opened more than half a million such accounts", commented A. Adomaitytė.
tv3.lt also contacted the Bank of Lithuania for a comment on the possibility for Lithuanians to open accounts abroad. However, he has not yet made any comment.
Plans in case of war are confidential and not disclosed
Some time ago, Renata Bagdonienė, Director of the Banking and Insurance Supervision Department of the Bank of Lithuania, said that banks and other financial market participants have business continuity plans in case of unexpected challenges.
I.e. envisions how to continue providing services to consumers without interruption under difficult conditions.
However, the representative of the Bank of Lithuania could not comment on these plans, because, according to the interlocutor, they are confidential and not disclosed.
"The example of Ukraine shows that even during the war, banks and ATMs are working, money transfers are taking place, etc.
As for cash, it is generally advisable to have a certain amount of cash, the amount of which would basically depend on the user's financial behavior and needs", commented R. Bagdonienė.
She indicated that a lot of advice and useful information for residents on this topic is published on the Lithuanian emergency preparedness website.
A war could affect taxes but not private property
According to Nomeda Lisauskienė, a doctoral candidate in economics at the ISM University of Management and Economics, the question of nationalization of residents' property arises because historically it happened during wars.
"During World War I, the United States government nationalized such strategically important areas as railroads and telegraph lines. A coal mine during the Second World War.
In 2001, after the events of September 11, the airport security services were nationalized. However, after the end of the war or extraordinary circumstances, the nationalized infrastructure is returned to the rightful owners or they are compensated," said the doctoral student.
According to her, the possibility that the state would confiscate money from citizens' accounts in the event of a war is hard to imagine and belongs to the category of conspiracy theories.
After all, even in the event of war, the Constitution and other laws restrict such actions and protect private property.
According to N. Lisauskienė, states must finance military actions and usually attract additional resources by raising taxes and issuing "war bonds", but not by confiscating private property:
"The practical possibility of confiscating money from citizens' accounts (or freezing them) is only possible if the country is controlled by an aggressor country whose actions are unpredictable."
How to protect yourself?
The doctoral student of ISM University of Management and Economics noted that financial preparation is important in any conditions.
"Considering the sustainability of income, even in the current conditions, you should have 3-6 months. "airbag".
If you live paycheck to paycheck, you should already review your expenses and try to reduce them, without waiting for external threats," N. Lisauskienė shared her recommendations.
According to her advice, in the event of a possible war, it is important to assess how sustainable a person's work and related income is in the event of a war.
Having a "security cushion" in case of war, according to the interviewee, should also be liquid and quickly accessible.
"If the monthly "pillow" is a couple of thousand euros, then keeping the amount in cash for at least a couple of months is not a problem.
However, securing larger liquid amounts could be solved by keeping part of the funds in a bank of a safer state and having that bank's card and internet banking," N. Lisauskienė did not hide.
Source: TV3.lt
