Banks paid the new bank levy but are ready to challenge it in court

The deadline for payment was January 25.

Illustrative stock photoIllustrative stock photo (Source: SME)

Banks in Slovakia have paid the first quarter of the bank levy to the state. The deadline for doing so expired on January 25.

Five of the biggest financial houses on the Slovak market have confirmed to the Hospodárske Noviny daily that they paid the sum.

However, they consider the recent changes to the levy, which was doubled and prolonged for an indefinite period, unconstitutional and are ready to claim the money back by using legal tools.

Adopted despite objections

The banks are complaining that the levy violates the financial stability of the Slovak economy and will eventually create obstacles for people and companies to access loans, the Index magazine reported.

Related articleBank levy will double Read more 

Although the levy was expected to end this year, the MPs approved changes in November 2019, increasing the levy to 0.4 percent of the banks’ liabilities and prolonging it indefinitely, despite the objections of the National Bank of Slovakia and the European Central Bank.

It is expected that the banks will pay €144 million more through the levy than last year, which is about €280-290 million, according to Index.

The Slovak Banking Association (SBA) said last December that the banks will turn to the Constitutional Court.

Meanwhile, it is expected that the higher levy will be reflected in increased bank fees. Poštová Banka has already admitted that it is changing its tariffs due to the levy.

Other banks said they have not considered increasing the prices of their services, according to Index.

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