Economics
Romania Wants Its Central Bank to Help Find a Way to End the ‘Greed Tax’
- Bank urged to re-define Robor interbank interest rate
- Decision on Robor to be taken with central bank, Valcov says
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Romania’s government asked the central bank to help it effectively eliminate a so-called greed tax on banks after the levy prompted the country’s worst market rout since the global financial crisis. Bank stocks surged in Bucharest.
The ruling Social Democrats drew rebuke from central bankers who said the tax, introduced to help keep the budget deficit within European Union limits and curb interest rates on loans, may harm the financial system and undermine monetary policy. The bank has since allowed the leu to weaken to a record low against the euro.