Poland’s Kaczynski tells banks to give savers higher interest or expect more taxes

Law and Justice (PiS) leader Jaroslaw Kaczynski applauds during the first sitting of the lower house of the Polish Parliament in Warsaw, Poland November 12, 2019. REUTERS/Kacper Pempel

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WARSAW, July 2 (Reuters) – Polish banks (.BNKI) will be taxed more if they do not offer their customers higher interest on their deposits, the leader of Poland’s ruling party said on Saturday, stepping up the pressure of the government on the sector so that it shares the benefits of the rise in rates with savers.

Poland’s main interest rate is at its highest level since 2008, boosting bank profits but crushing household budgets in a country where variable-rate mortgages are the norm.

“I don’t want to decide for the bankers, but it has to be a solid percentage, not on the level of inflation, but enough that people feel that this money will lose much less value when it is in the bank” , said Jaroslaw Kaczynski. said during a speech in the eastern city of Bialystok.

“Otherwise, we will have to tax these profits and that’s it.”

Polish Prime Minister Mateusz Morawiecki has previously criticized banks for not offering enough interest to savers and said in May he would use “persuasion” to get them to offer more. Read more

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Reporting by Alan Charlish; Editing by David Holmes

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