Photographer: John Guillemin/Bloomberg

The Fallout From Poland's Bank Tax: Lending Declines for First Time Since April

Total lending drops for first time in 10 months in February

Lending in Poland fell for the first time in almost a year in February, the first month banks had to pay a tax on their assets.

“Deceleration of the lending action is a result of the additional tax the industry has to pay,” according to Rafal Sadoch, chief economist at Noble Option.

The government introduced the new tax of 0.44 percent of lenders’ assets, including loans, as of last month. The tax is expected to bring a total 4.4 billion zloty ($1.1 billion) to the state budget this year. 

--With assistance from Barbara Sladkowska

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