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Banks will not pass cost of levy onto clients this year

In spite of the "terrible" size of the extraordinary bank levy, Hungarian banks will not pass on the burden to their clients this year, Hungarian Bank Association chief Tamás Erdei said in an interview with on Tuesday.

It is not in banks' interest to create an impossible situation for retail or corporate clients, thus they will pay the tax this year from reserves or capital, Erdei said. However, if the tax remains in the mid-term, for example, for three years, banks would be forced to pass on the cost to clients, he added.

The bank levy is expected to raise HUF 187 billion in budget revenue this year. (MTI-ECONEWS)