Bank levy cut cleared way for Erste deal
Hungary's bank levy will be reduced and calculated on the basis of balance sheets for the end of 2014 under a memorandum of understanding between the government and the European Bank of Reconstruction and Development (EBRD) achieved yesterday, Hungarian news agency MTI reported.
This decision is apparently what made it possible for the government and EBRD to buy into Erste Bank Hungary. Erste Bank said it will allow the two entities to buy into its Hungarian unit if the banking tax was lowered, and that purchase was announced yesterday.
The percentage applied will be reduced to 31bp from the beginning of 2016 and to 21bp from the start of 2017 to the end of 2018, according to the memorandum of understanding. From 2019, the amount of the levy will be "further aligned with the prevailing European Union norms".
The government said in the memorandum that it would "refrain from implementing new laws or measures that may have a negative impact on the profitability of the banking sector, other than those the government of Hungary may be obliged to implement due to its membership in the European Union".
A further commitment was made to "ensuring that there is fair competition between, and equal treatment of, all financial institutions active on the market in Hungary, irrespective of size or nationality of ownership, in line with the single market rules of the European Union and the principles of free and fair competition".
Richter Shareholders Approve HUF 423/Share Dividend
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
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.
