Spain's finance minister says decision on bank tax is "taken and fair"

MADRID – Spain’s finance minister stated on Friday it was truthful to impose a 3 billion euros ($3.05 billion) tax on banks to assist these fighting the hovering price of dwelling as a result of lenders have been bailed out within the monetary disaster and can profit from rising rates of interest.

Financial system minister Nadia Calvino was talking earlier than assembly financial institution chiefs together with the Financial institution of Spain Governor for the primary time for the reason that tax was introduced by Prime Minister Pedro Sanchez in a state of the nation speech final week.

“The choice has been taken. The overwhelming majority of Spanish residents perceive it and help it as a result of it's the proper factor to do,” she stated in an interview broadcast on Spain’s TVE.

She declined to touch upon whether or not additional particulars of the tax could be shared on the assembly, saying there could be “an trade of views”.

A supply from her division stated the small print have been nonetheless being finalised by the Finances Ministry.

Final week, two sources with data of the matter stated the federal government was readying a levy of just under 5% on internet curiosity revenue and banking commissions as a part of the implementation of the tax.

Calvino stated the influence of the Russian invasion of Ukraine needed to be addressed. “It has to begin with these sectors which are making extraordinary income that must contribute to financing this response to the warfare,” she stated.

On Thursday the European Central Financial institution raised rates of interest by 50 foundation factors. Calvino stated that may inevitably increase revenue for lenders.

One other tax, on vitality firms’ windfall income, is anticipated to boost 4 billion euros.

Senior bankers have instructed Reuters that increased borrowing prices shouldn't be thought of extraordinary features since adverse rates of interest have weighed on banks for a number of years.

On Thursday, Spanish lender Bankinter chiefs stated a brand new tax would harm financial development and dent investor confidence within the sector. ECB Vice President Luis de Guindos cautioned towards any tax that risked damaging the solvency of the trade.

($1 = 0.9844 euros)