Erste Bank AG logo

EBS - Erste Bank AG News Story

€19.91 -0.3  -1.6%

Last Trade - 4:35pm

Sector
Financials
Size
Large Cap
Market Cap £7.42bn
Enterprise Value £4.47bn
Revenue £7.59bn
Position in Universe 116th / 1040

UPDATE 1-Slovakia to scrap tax in return for bank pledge to lend more

Mon 22nd June, 2020 11:56am
(Adds quotes from prime minister, banking body, central bank)
    PRAGUE, June 22 (Reuters) - Slovakia has agreed to replace a
special tax levied on bank balance sheets with a commitment from
banks to lend more to public and private projects, the prime
minister said on Monday.
    The special tax was introduced in 2012 after the global
financial crisis to create a buffer fund to help cope with
future crises. It has raised about 150 million euros a year. 
    "We have agreed to introduce an entirely new scheme instead
of the bank tax," Prime Minister Igor Matovic told a televised
news conference.
    Under the new plan to be proposed to parliament, accumulated
payments of the tax, amounting to about 1 billion euros  ($1.1
billion), would be moved into a state development fund, he said.
    Future payments would be scrapped and banks would instead
use the cash saved to boost capital, enabling them to lend about
500 million euros for public projects each year and a further 1
billion euros on private projects, Matovic said.  
    Alexander Resch, the head of the euro zone country's banking
association, told the joint news conference with Matovic that
banks backed the move.
    "This will release resources necessary to increase our
capital in order to give more loans to families, households and
in the end ... support the Slovak economy with roughly 1.5
billion euros in additional loans per year," he said.
    The levy had faced criticism especially after the previous
government doubled the rate from this year. The central bank
said in April the higher rate would take half of bank profits.
    The central bank welcomed the move to scrap the tax and to
encourage lending instead. "Common sense has won," Governor
Peter Kazimir said in a statement.
    Slovakia's top banks include KBC Group's CSOB  KBC.BR ,
Erste Group Bank's Slovenska Sporitelna  ERST.VI , Raiffeisen's
Tatra Banka  RBIV.VI  and Intesa Sanpaolo's VUB  ISP.MI .
    
($1 = 0.8916 euros)

 (Reporting by Jan Lopatka; Editing by Edmund Blair)
 ((jan.lopatka@thomsonreuters.com; +420 234 721 614; Reuters
Messaging: jan.lopatka.thomsonreuters.com@reuters.net))
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.