Banks propose affordable loans and one-off solidarity tax

Talking to the newspaper Delo, Bank Association Director Stanislava Zadravec Caprirolo also said that banks were against any new tax on their profits, a move that is being mulled by the government.

She told the Thursday edition of Delo that the Bank Association had discussed with the Finance Ministry and the central bank a possible regulation of loan moratoriums.

Moreover, they propose home reconstruction loans at fixed interest rates, such as 3% for 10 years, and with state guarantees, Zadravec Caprirolo said.

She expressed opposition to a possible unilateral imposing of a profits tax, saying that the banks' profits are of transitory nature and could decrease by the end of the year due to impairments and loan write-offs in the wake of the floods.

Moreover, it could be very risky and problematic, if taxation were to apply differently to individual sectors, she said.

One of the possibilities for solidarity aid could be a one-off low profit tax for the entire economy, or a one-time additional percentage point in income taxation. "Such a measure would not have a significant effect on anybody."

The revenue from such solidarity taxes could flow into a special-purpose fund that is to be set up by the SID investment bank, said Zadravec Caprirolo, adding banks could contribute donations and affordable funding in the form of loans to the fund.

The Bank Association has also been in talks with the Bank of Slovenia about loosening macroprudential restrictions for people who have been hit worst by the floods.

The measure would be designed for individuals, who would be able to take out consumer loans under conditions more favourable than on the market for a period of over seven years, which is the limitation now.

"People have lost cars, they need to buy new kitchens, as well as other furniture and appliances. All this is expensive and when you need to buy all of this at once, it is sensible to change the restrictions," Zadravec Caprirolo said.