ECONOMY FINANCE&BANKING

Isarescu: Central bank has doubts on application of ‘tax on greed’. BNR, not putting pressure on banks not to lower ROBOR

Isarescu, after Teodorovici said he will invite him to the Finance Ministry: I haven’t received any document

 

The Governor of the National Bank of Romania (BNR), Mugur Isarescu, said on Tuesday that he hasn’t received any invitation from the Minister of Public Finance, Eugen Teodorovici, for a visit to the Finance Ministry.

“I haven’t received any document”, the Governor of the National Bank of Romania (BNR), Mugur Isarescu stated on Tuesday at the press briefing following the first monetary policy session of this year, when asked if he received any invitation from the Ministry of Public Finance.

Also, regarding the BNR’s pressure on banks to make them not to low ROBOR, the BNRGovernor denied this.

“It’s the main monetary policy instrument. It’s a nonsense. We haven’t done any pressure”, Isarescu stressed, referring to the fact that the monetary policy rate is 2.5% per year.

Also asked if he will answer to a possible invitation, the Governor said a discussion about banks should be held within the National Committee for Macroprudential Supervision (CNSM), and he, as the President of this Committee, takes into account the possibility to convene an extraordinary session to discuss about the tax on the financial assets for banks.

“We are going to the National Committee for Macroprudential Supervision. Should we talk to a gossip? To a coffee?”, Isarescu pointed out, referring to a possible invitation to discuss about it to the Finance Ministry, (e.n. – the Minister of Public Finance is part of this Committee)

“We must seriously discuss within the legal framework we have, which is voted by the Romanian Parliament, it is the legal framework of the European Union: it is called the National Committee for Macroprudential Supervision. We don’t gossip on TV. It’s an impact of billions of euros. We have the right to make proposals, suggestions”, Isarescu stressed.

The official representative of the Central Bank also mentioned that the NBR analysis on the new tax on banks, which was sent to the Finance Ministry, was requested after this tax was announced, and NBR told to the Public Finance Ministry representatives that this is a preliminary effort, “made in a few days”.

Minister of Public Finance Eugen Teodorovici said on Sunday evening, in a TV show, that he will invite the Governor of the National Bank of Romania (BNR), Mugur Isarescu, to the Ministry, for a discussion on banks. “I will send an invitation to the Governor, to come to the Finance Ministry, together with the President of the Romanian Association of Banks (e.n. – Sergiu Oprescu). We should talk about bank provisions. It is time for the Governor to come to the Finance Ministry for an open talk”, Eugen Teodorovici stated on Sunday evening in a TV show at Antena 3.

The Minister of Public Finance also claimed that he heard in the last days that there is an aggressive pressure from NBR, in order for ROBOR not to be lowed; the tax on the financial assets of the banks is set depending on ROBOR. “It’s for the first time when I do such a thing (e.n. – invite the Governor). The Governor knows, and the others know that I feel certain things very well and I’m not wrong”, Teodorovici pointed out.

The Finance Minister also said ROBOR should be set according to the transactions that are made, not according to the quotations.

“In January, there will be discussions with BNR and the banks on the manner to apply this ordinance”, Teodorovici mentioned, speaking about GEO no.114/2018, which includes also the tax on the financial assets of the banks.

The Finance Minister also said he prefers the state to have a higher financing cost, “because the cost will be lower on the market and benefits will come from the consequences from the second round, when interests will be lower on the market and economy will grow”.

 

BNR Governor, about the tax on the banks’ assets: This strange idea took us by surprise too

 

Isarescu also said on Tuesday that imposing a new tax on the banks’ financial assets is a strange idea that must be discussed with the banking system.

“The main dissatisfaction (of the banks towards the tax on the banks’ assets – e.n.) is that (…) it hasn’t been discussed with the banking industry. That’s how you build the Constitution, that’s how you build the laws in Romania: you discuss with the banking industry, instead of bringing a bomb which is hard to understand at the end of the year, before Christmas. I believe the Finance Minister will discuss with the industry. They have questions about how to apply it. I must admit that we also have questions. There are issues we can hardly understand”, the Governor of the National Bank of Romania (BNR) Mugur Isarescu stated on Tuesday at the press briefing after the first monetary policy session of this year.

The Governor also mentioned that there are taxes on the banks’ assets in Europe, but they are not related to an index like ROBOR, and he labeled this connection as “an innovation”.

The tax on the banks’ financial assets is 0.1-0.5% for the quarterly ROBOR average of 2-4%, since the beginning of this year.

“This strange idea took us by surprise too”, Isarescu also said, when asked how this tax will affect banks and people.

 

Isarescu, about what he will do after the elections for the BNR’s Board of Directors: Parliament will decide

 

The Governor of the National Bank of Romania said the Parliament will decide what he will do after the elections for the management of the Central Bank, which are scheduled for the second half of this year.

“Parliament will decide”, NBR Governor Mugur Isarescu answered on Tuesday, at the press briefing after the first monetary policy session of this year, when asked what he will do after the elections for the BNR’s Board of Directors. These elections are scheduled for October 2019.

Related posts

FinMin Teodorovici: I have asked PM to dismiss ANAF head Ionut Misa. Gov’t appoints Mihaela Triculescu the new head of National Agency for Fiscal Administration

NINE O'CLOCK

Remittances of just USD 3.2 bln from the 2.5 million Romanians working abroad

Nine O' Clock

Number of individuals with outstanding debts to banks, NBFIs drops to 611,613 in October

Nine O' Clock

Leave a Comment