Tax on greed on bank assets as of 1 January put forward by gov't, with rd 3 bl lei impact

The government puts forward as of 1 January 2019 a duty called "tax on greed" on the financial-banking institutions, in case the 3-month and 6-month interbank offered rate ROBOR, which serves as benchmark for floating-rate loans in lei go over a certain value, the impact of such measure being able to reach 3 billion lei (rd 645 million euro, ed. n.), on Tuesday announced at the Victoria Palace, the Pubic Finance Minister Eugen Teodorovici. 

"It is proposed that a duty be applied as of 1 January on the financial and banking institutions' assets, called the tax on greed, because it is the best expression for what is today happening in Romania, and it will be levied on the institutions if the 3-month and 6-month interbank offered rate ROBOR exceed a certain percentage value. The tax is established based on the quarterly average of the 3-month and 6-month offered rates ROBOR when the 1.5pct value is exceeded. This is the threshold below which such a duty does not apply," Teodorovici explained, adding that the impact of such a measure could amount to about 3 billion lei or could be zero, should the banks decide to maintain the ROBOR at the 1.5pct reference ceiling.