Statement by AKEL Political Bureau member Eleni Mavrou, on taxing bank’s super profits and the reactions of right-wing DISY

 

18 May 2024, AKEL C.C. Press Office, Nicosia

Every day DISY proves that its sole concern is to protect the interests of the banks.

DISY’s insistence on protecting at all costs the super profits accumulated by the banks, not out of good business practices but because of the European Central Bank’s decisions on interest rates, is astonishing.

DISY isn’t bothered that bank’s profits are soaring with windfall revenues, nor by the burden placed on society by increasing interest rates. It isn’t worried about the government’s apathy. But it’s annoyed by AKEL’s costed and well-documented proposals.

It is using a false argument that they themselves are not even convinced of: that the tax proposed by AKEL will supposedly be shifted on depositors and borrowers. It would be more convincing if it were at least asserting an increase in deposit rates, which remain far below lending rates. It doesn’t dare propose even this measure.

The windfall income of the banks due to the interest rate hikes took off and exceeded €1 billion in 2023. The tax fee proposed by AKEL to be applied on an exceptional basis for 2024 and 2025 will generate additional state revenue amounting to €50 million per year to be used for providing financial support of borrowers and the state’s housing policy.

AKEL’s proposal follows the example of other EU countries – particularly Spain – by safeguarding both financial and fiscal stability while supporting society which constitutes a component of a strong economy.