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Exclusive: International development banks criticize Romania over bank tax plans

“Analysts say they could make banks unprofitable and they have also drawn particular criticism for a complex mechanism which ties them to Romanian money market rates” reports The headquarter of the European Bank for Reconstruction and Development (EBRD) is seen in London Thomson Reuters By Marc Jones LONDON (Reuters) – Two major international development banks, the European Bank for Reconstruction and Development and the International Finance Corporation, have formally complained to the Romanian government about proposed new banking sector taxes. The EBRD has been a shareholder in Banca Transilvania, Romania’s second biggest bank by total assets, since 2001 while last year it also bought a 19 percent stake in Piraeus Bank Romania from Greek parent Piraeus Group.The worry is the money market rates will be distorted by the changes which in turn would make it difficult for the central bank to judge the impact of its interest rate moves.

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