Romania’s Finance Ministry on March 20 informed bankers about the latest version of the so-called “greed tax”, along with a promise to cut it down to zero for the most industrious banks that “demonstrate commitment in financing local companies and households.”

“I put zero [revenues from the greed tax] in the budget because I don’t want to levy taxes,” finance minister Eugen Teodorovici said.

To have the tax waived, the banks will have to “increase financing” [not clear yet whether this refers to stock of loans or new loans] by at least 8% in the year, and narrow the loan-deposit interest margin [again, not clear whether this is defined for stock or new loans/deposits], local Profit.ro reported. Both conditions account for 50% waiver in the “greed tax”.

When it comes to the calculation of the greed tax, things get more complicated. However, Teodorovici promises not to levy a tax that is larger than the bank’s profit, under the worst case scenario. Loss-making banks will not pay the greed tax.

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19 March 2019

Business

New “greed tax” in Romania to penalise “unjustifiable” loan interest rates

editor@romania-insider.com

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