BRATISLAVA, July 26, (WEBNOVINY) — The Slovak Parliament on Thursday approved a bill increasing the special levy for banks. Based on the draft amendment on the special levy on certain financial institutions, with effectiveness from the last quarter of this year, the basis for calculating the levy will be widened to also include retail deposits, whereby banks will have to pay the special levy. At the same time, amending proposals regarding the gradual decrease of the levy rate and temporary suspension of the duty for bank pay a contribution to the Deposit Protection Fund were passed, too. After the president signs the bill into law, it will come into force from September 2012.
Banks will be obliged to pay the special levy until the so-called resolution fund to which the levy will be paid contains EUR 1 billion. After accumulating EUR 500 million from banks, the levy rate will decrease from 0.4 percent to 0.2 percent of the calculation base and after collecting EUR 750 million to 0.1 percent. The original draft proposed a rate of 0.4 percent from corporate deposits, but the approved draft introduces a calculation base widened by retail deposits, too, and the levy will thus increase two-fold. Next year, banks are to pay EUR 200 million in the levy, while this year approximately EUR 50 million.
According to the Slovak Banking Association, banks will pay on average 55 percent of their profits in taxes and levies. Next year’s levy burden of EUR 200 million will negatively affect banks‘ capital, and thus also the ability to provide new loans. As Finance Minister Peter Kazimir said, if capital adequacy of several banks is endangered, they will respond by changing the law.
SITA