ECB recommends 16 pc profit to BNR

The European Central Bank (ECB) has recommended the National Bank of Romania (BNR) to eliminate the special 80 percent tax and apply the standard rate of 16 percent. “The ECB believes that a special 80 percent tax adds strain to the central bank. The state, sole shareholder of the central bank, argues that if BNR reports significant losses a possible recapitalization should be made from public money. On the other hand, the central bank can create reserves for such instances,” official sources have stated for Mediafax. According to them, the ECB insists that BNR should set its own accounting rules without the Ministry of Finance’s approval, who will always seek to maximize budget revenues. “A discussion is held at European level on how to ensure independence for central banks and cover potential losses,” the cited sources added. In 2012, BNR reported a RON 694.14 million (EUR 156.2 million) net profit, twice higher than the EUR 301.3 million profit from 2011. However, the central bank reported losses in 2013, despite the fact that the Ministry of Finance budgeted collections of at least RON 1 billion from BNR. According to the bank’s official explanation, being assigned net debtor of the banking system was a deliberate choice aimed at consolidating the perception of decreasing long-term interest rates among banks.

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