BNB Governor: Taxing banks' extra prifits could impact financial stability

The proposal to tax banks' excess profits will have negative consequences for the country's economic activity and financial stability, BNB Governor Dimitar Radev said in a conversation with BNT presenter, Georgi Lyubenov, on the Banker's Day, December 6.

Here is how Dimitar Radev described the idea of the Ministry of Finance:

"Since loans are affordable, they are at an acceptable rate. Taxing banks' extra profits will have the immediate effect of making loans more expensive and limit the availability. This will put a very serious drag on economic activity, negatively affecting everyone—banks, businesses, and households—ultimately resulting in a loss for the state budget. When you find yourself in a hole, the first thing to do is stop digging. Taxing the extra profits of banks won’t fill the hole but will make it deeper," said Dimitar Radev.

BSP-United Left supports proposal for windfall tax on banks' profits