In the credit organisations attributed the withdrawal of money from the lack of full information on the new tax and fear a mass escape from deposits. They appealed to the regulator to explain in detail the new rules and expand the Toolkit of the Bank of Russia to provide liquidity to banks in case of outflow of funds because of the announced vacation credit for those affected by the pandemic COVID-19.
In particular, credit institutions are asked for six months to open unsecured lines of credit not included in the number eleven systemically important banks (only in the Russian Federation 436 banks), launch of the currency REPO against securities taken by the Bank as collateral. In addition, the Association said it was ready to use other tools that will offer Central Bank.
Russian President Vladimir Putin on March 25 during a TV address to the citizens announced the introduction of a tax of 13% on income from deposits and interest income from investments in bonds. The tax will be levied only on interest on investments of more than 1 million rubles, and not the principal amount. As told in the Kremlin, the new rules introduced due to the difficult economic situation in the country, and to restore a fair balance in the economic sphere. The timing of the expiration of the tax, the Russian leader called.
Read the article: “Putin’s “tax the rich”: whether to withdraw deposits from banks”
