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Bill would allow OTP to write off Ukrainian losses

Telco

In a provision apparently tailored to OTP Bank, a tax bill submitted by the government to Parliament yesterday would allow the bank to deduct some losses in Ukraine from the bank tax next year.

"A bank with a unit in Ukraine as of January 1, 2014" will be able to deduct losses and impairment at the subsidiary from the bank levy due in 2015, the bill says. However, the deduction is possible only against losses caused by "Russian measures destabilising the situation in Ukraine", and is capped at HUF 5 bln, according to the bill. OTP Bank, Hungary's biggest commercial lender, booked a HUF 11.2 bln loss at its unit in Ukraine for the first half of this year, the bank's latest earnings report shows.

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