Romania’s minister of finance accuses some banks of tax avoidance over NPLs deals

The minister of finance, Ionut Misa, claims that some banks in Romania have avoided the payment of taxes through the transfer of non-performing loans (NPLs). He added that 31 out of the 46 banks operating on the local market did not pay any profit tax in the last five years. According to the central bank data, there are 35 banks operational in Romania.

“There has been a massive process of NPL sales in the past year. Considering that if you sell a loan of EUR 100 million with EUR 5 million, you have a consistent loss, without any doubt,” said Misa.

The minister went on to say that based on risk analysis, the authorities will check if banks sold NPLs at unjustified prices, through offshore firms or companies registered in various tax heavens. Misa explained that as a general principle those in the baking system should be aware that “we know exactly what is happening and to determine them to give up such practices, to make fair registrations, to make honest operations, just as in other countries in Europe, to pay the profit tax,” according to news.ro.

Liberal MP Daniel Zamfir, head of the economics committee in Parliament, has asked Misa to provide a list with the 31 banks that did not pay any profit tax in the last 5 years.

Zamfir has accused the banking system of predatory actions. He initiated the debt discharge law, which has been criticized by bankers. Meanwhile, he is working on a new draft bill to limit the interest rates on loans provided by non-banking financial institutions (IFNs).