Ireland may place new levy on banks – paper

PHOTO: Ireland may place new levy on banks – paper

DUBLIN – The Irish government is considering imposing a new levy on the country’s banks in next week’s budget to replace some of the fees the lenders paid under a recently cancelled deposit guarantee scheme, the Sunday Times newspaper reported.

Ireland’s banks paid up to 430 million euros (S$725.75 million) per year to the state under the deposit guarantee scheme, which was cancelled in a bid to help speed the lenders’ return to profitability.

“It was decided the banks should make a contribution to the 2.5 billion euro (budget) adjustment, so a levy of between 100 million-200 million euros was agreed by the EMC,” the paper quoted a government source as saying, referring to the Cabinet’s four-person Economic Management Council.

A government spokesman declined to comment on the report.