Romania Central Bank 2009 Tax On Profit Exceeds EUR300M

„For those who don’t know, the central bank pays its dues on time. Last year alone, the bank paid over EUR300 million and the same amount will be paid this year as well,” said Lucian Croitoru, adviser to the central bank’s governor, Mugur Isarescu.

Romania’s former liberal prime minister Calin Popescu Tariceanu, now in opposition, on Tuesday proposed a series of measures aimed at discouraging the government from applying severe wage and pension reductions, including a recommendation to tax the central bank’s profit.

The central bank reported net profit of 300 million lei (EUR1=RON4.1949) in 2009. The lender said it would direct 60% of the profit to its statutory reserves and 30% to set own financing sources.

The central bank’s gross profit in 2009 amounted to RON4.6 billion, but the lender used approximately RON2.8 billion to cover its losses from the previous years. Another RON1.5 billion was paid to the state budget as tax on profit.