Bloomberg News

Slovak Lawmakers Approve Bank Tax of 0.4 Percent of Liabilities

October 20, 2011

Oct. 20 (Bloomberg) -- Slovak lawmakers approved a new bank tax from next year as the country seeks to cut the budget deficit and build reserves against any future bank crisis.

Deputies in Bratislava, Slovakia, today backed the bill calling for a 0.4 percent levy on banks’ liabilities, excluding insured deposits, according to parliament’s website.

The proceeds from the tax will be used to cover costs of any future financial-market turbulence in the eastern European country. Unlike some of its peers, banks in Slovakia, which are mostly subsidiaries of foreign lenders such Austria’s Erste Group Bank AG, didn’t need aid from the state during the global financial crisis.

The tax is one of the measures to help trim the budget deficit and may raise about 80 million euros ($111 million) a year, according to a Finance Ministry projection.

--Editors: Douglas Lytle, James M. Gomez

To contact the reporter on this story: Radoslav Tomek in Bratislava at rtomek@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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