The new tax on bank’s financial assets enacted by the Romanian Government will not prevent Austrian Erste Group, the owner of Romania's second-biggest bank - BCR, from gaining profits on the local market, the group’s CEO Andreas Treichl said, quoted by Reuters.

He added that the tax is “not pleasant but not a disaster either" and will prevent profitability only for banks operating almost exclusively in Romania.

Erste CEO believes that the tax will not last long in its current form. Even so, the Austrian group has the capacity to remain profitable in Romania.

“As usual, the market has over-reacted to the news of a new tax in Romania,” Treichl added, referring to the drop in Erste's share price, triggered by the prospect the new tax on bank assets in Romania.

On the first day after the tax was announced, Erste’s shares fell by 8% on the Vienna Stock Exchange.

Romanian banks put investments on hold ahead of “perfect storm”

editor@romania-insider.com

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