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Croatia’s Property Tax May Affect Banks’ Results, Poslovni Says

Nov. 23 (Bloomberg) -- Croatia’s new property tax, which the government plans to introduce from April 1, may erode commercial banks’ profits through ensuing lower market values for property, Poslovni Dnevnik reported, citing the central bank.

A systemic change of the market value of property could affect the banks’ business results, the central bank said, according to the Zagreb-based business newspaper. Property prices may fall as higher taxes will be levied on second and third homes and many people would try to sell them, the newspaper said.

Such a change would not affect the banks’ capital adequacy, Poslovni cited the central bank as saying.

To contact the reporter on this story: Jasmina Kuzmanovic in Zagreb at

To contact the editor responsible for this story: James M. Gomez at

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