Skip to content
Subscriber Only

Poland's $41 Billion Bond Investors at Risk From New Asset Tax

  • Local banks seen jettisoning bonds targeted under proposal
  • Prime minister urges lawmakers to vote in bill for `citizens'
Updated on

By taxing banks’ assets, Poland’s new government risks losing its biggest local investors.

The Law & Justice party’s planned 5 billion zloty ($1.3 billion) levy may force lenders to sidestep risks to their profits by shunning investments in bonds and loans hit by the tax. The withdrawal of banks threatens to sap East Europe’s biggest bond market of local dealers, making it more dependent on foreigners.