Spanish banks mull authorized problem to financial institution tax proposal By Reuters

By Jesús Aguado

MADRID (Reuters) -Spanish banks Bankinter and Caixabank are contemplating difficult the federal government’s new banking tax proposal in courtroom, executives from the lenders stated on Monday.

An amended windfall tax proposal for Spanish banks and huge vitality firms final week cleared its first hurdle in parliament with the backing of the leftist ruling coalition and a number of other regional events.

The Spanish authorities goals to lift 3 billion euros ($3.14 billion) with the proposed tax by 2024 regardless of the European Central Financial institution’s warning about its potential antagonistic results on the economic system and unfavourable affect on the solvency of banks.

“In fact we are going to problem it. It’s completely unfair, discriminatory and confiscatory,” Bankinter’s Chief Govt Maria Dolores Dancausa stated in Madrid throughout a monetary occasion.

The lender may do that after the settlement of the primary a part of the tax fee, she stated, which in line with the laws can be in February.

Gonzalo Gortazar, CEO of Caixabank, the nation’s greatest home financial institution by belongings, stated throughout the identical occasion that “if ultimately the ultimate textual content incorporates components that from the standpoint of the regulation aren’t in accordance with the regulation, clearly our obligation as managers might be to enchantment it”.

“However we are going to wait to see the ultimate textual content to make the choice,” Gortazar stated.

If political events within the Senate introduce further modifications, the decrease home, or Congress, would want to debate the proposal once more, although banking executives resembling Gortazar on Monday stated they didn’t count on any further modifications.

Earlier this month, the banking tax was amended to impose levies on the native models of overseas lenders after the ECB stated the proposal would distort competitors.

Any potential authorized problem from the sector in opposition to the federal government would represent an unprecedented authorized transfer.

BBVA (BME:)’s Chief Govt Onur Genc stated his financial institution would analyse the implications of the financial institution tax proposal and “we are going to resolve in due time whether or not to enchantment it”.

($1 = 0.9555 euros)