Bulgarian National Bank Warns Against Proposed Excess Profits Tax on Banks

The Bulgarian National Bank (BNB) has voiced strong opposition to a proposed 10% tax on banks' excess profits, citing concerns that it would destabilize the financial sector. Governor Dimitar Radev argued that implementing such a measure to address next year’s budget deficit would result in higher credit costs and negatively impact the stability of Bulgaria’s financial system. He warned that the banking sector, currently the most stable in the country, would face significant challenges under this policy.

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