Bill would allow OTP to write off Ukrainian losses
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.