Sutaj Estok: Banks Should Contribute to Consolidation via Higher Taxes

Bratislava, 1 August (TASR) – Banks should bear higher levies and contribute more significantly to the consolidation of public finances, said Matus Sutaj Estok, leader of the coalition's Voice–SD party, at a press conference on Friday. Sutaj Estok expressed outrage that banks reported a total net profit of more than €570 million in the first half of the year, while many people are struggling financially. "As a social democrat, as a leftist politician, I will naturally target consolidation measures at those who are doing well in the country. Not just through their own skill, but because banks earn primarily off people," stressed Sutaj Estok, who plans to raise the issue with Finance Minister Ladislav Kamenicky (Smer-SD). Sutaj Estok believes that banks, retail chains and multinational corporations should play a major role in supporting fiscal consolidation. He recalled that Slovakia previously had a higher banking levy, and he sees the potential reintroduction of a special levy on banks, multinational firms and retail chains as one possible measure. However, he added that the final proposal must come from the finance minister. "I haven't seen interest rates at banks at the levels we had years ago, when young people could almost get mortgages for free. Today, the interest rate is around 4 percent, so naturally, when a young person pays 4 percent on a mortgage to buy a flat, it's not difficult to see banks posting a €570 million profit in just six months," said Sutaj Estok. The Slovak Banking Association reported on Thursday (31 July) that the net profit of banks after tax rose by 4.9 percent in the first half of the year to €574 million. Banks paid €311 million in taxes. Pre-tax profits decreased slightly year-on-year by 1.6 percent, mainly due to higher provisions, reserves and rising operational costs. mf/df