Romania's Macroprudential Board fails to settle “greed tax” issue

Romania’s National Committee for Macroprudential Supervision (CNSM), which brings together representatives of Romania's National Bank (BNR), the Financial Supervisory Authority (ASF) and the Finance Ministry, failed to settle in its February 18 meeting the dispute on the so-called "greed tax", a tax on financial assets proportional with the interbank market interest rate (ROBOR).

"Based on the reports discussed, the CNSM identified solutions for possible scenarios for adapting emergency ordinance (OUG) 114/2018 to the legislation in force," the body announced, deferring de facto any relevant decisions.

One night before, finance minister Eugen Teodorovici, from his new position of vice-president of the European Bank for Reconstruction and Development (EBRD), expressed confidence in overthrowing the ROBOR-based system of loan interest rates.

“I am confident we will [definitely] have, as soon as possible, a radical change in the way Romanians are paying this ROBOR, so to speak,” Teodorovici said in a TV show at Antena 3, quoted by Ziarul Financiar daily.

He also expressed confidence that the methodology for calculating loan interest rates can be revised, despite the central bank pouring cold water on any attempts in this regard.

"I still support, and I will not give up on this: having a mechanism that is transparent for ordinary people, not transparent for bankers. This [transparency for bankers] is not transparency. It's their world, out of which we are all kept away, a crystal globe no one is allowed to touch," Teodorovici said.

(Photo source: Gov.ro)