New Bank Tax Policy in Poland
Markets show concerns over a new bank tax policy after the election in Poland.
The election in Poland provoked fussy feedback from the markets, where zloty and bank shares show a slight drop.
The famous Law and Justice party have a plan to fill the economy with 350 billion in local currency (roughly 80 billion euros). The project is to encourage the economic boost over the next 6 years, but this plan will impose a tax with a rate of 0.39 percent on the banks’ funds.
The banks' reaction was quite irritating and resulted in zloty drop to the minimum cross rate against the euro over the last nine months.
An economic expert, Andrzej Bobinsky, is sure that the banks’ profits will be cut at least twice if the above-mentioned tax is approved and applied. The mortgage area will be the first to feel the negative effect, which will subsequently result in delays in credit activity.
Banks of Poland are currently struggling with another problem with financing over 500 thousand mortgage holders who were given loans in Swiss francs, the banks had to convert these to the national currency.
Most loan borrowers nearly failed to pay back after a sudden rise of the franc, followed after the cancellation of Swiss policy of fixing their currency against the euro.
Poland Business News