site.bta Association of Banks CEO on Potential Tax on Banks' Excess Profits: "Banks Should Not Be Scapegoated"

Shortly after the Finance Minister provided details for her ministry's taxation plans, including a possible windfall tax for banks, the Chair of the Association of Banks in Bulgaria and CEO of Postbank Petia Dimitrova told reporters here on Monday that banks should not be scapegoated for the State's policies. She noted that this matter is yet to be officially discussed.

Dimitrova said: "We have seen in other countries where this was raised as an issue. Italy is a good example. The ECB [European Central Bank] and the EC [European Commission] came out with official letters that this is not right. Also this will not in any way change the deficit or the 'hole' that may or may not be there. I would not like to comment on something that that is yet to be commented on by the Finance Minister."

The CEO of Postbank labelled a potential tax on banks' excess profits a populist measure and added that banks and the banking system are one of the stable structures in Bulgaria. She said: "The stability of the banking system is fundamental in the economy in this country, and we should do everything possible to keep it that way. The stability of the banking system, keeping it well capitalized, liquid, as it is at the moment, helps the economy develop and have a stable foundation. Anything else that we start doing as populism will only come back like a boomerang and hurt us as citizens."

Dimitrova took part in Euro Currency Week at the University of National and World Economy in Sofia and the 10th Annual Monetary and Economic Scientific Conference on the Digital Transformation and Economic Recovery in the Post-Crisis Period.