The IMF asks to suppress the financial institution tax | Economy | EUROtoday

The International Monetary Fund (IMF) believes that the financial institution tax needs to be suppressed. In his ultimate assertion of the mission despatched by the company to Spain, its technicians point out that “that it should be discontinued at the end of its three -year period.” The IMF factors out that the monetary system continues to take pleasure in good well being, though it has much less capital than that of different European nations. It applauds that the Bank of Spain requires a better mattress of anti -cyclical capital and recommends monitoring publicity to the actual property sector. It doesn’t see imminent threat, however the reminiscence of the burst of the bubble and the monetary disaster that brought on publicity to brick continues to be alive.

The finish of the mission assertion doesn’t give particulars about its advice to suppress the financial institution tax. It is barely a line inside its fiscal coverage suggestions, during which it asks Spain to a clearer technique primarily based on effectively -defined priorities for rising taxes and spending discount. “They could include the harmonization of VAT types and strengthening green tax to argue.

The diagnosis of the agency on the financial sector indicates that it enjoys good health, with banks that have comfortable capital and liquidity mattresses, despite the fact that the main capital ratios are slightly below those of their eurozone counterparts. “The profitability of the banks has been excessive, the structure of provisions has been prudent, and the standard of the belongings has remained stable,” the technicians praise, who also underline the low delinquency and the relatively relieved financial situation of households and companies.

To further reinforce the resilience of the banks, the Bank of Spain must proceed with the second stage of the gradual introduction of the positive anti -cyclical mattress, according to the background. The application in two stages, 0.5% introduced in October 2024, with another 0.5% planned for October 2025, allows a gradual adjustment. “Given their present ranges of capital and profitability, banks are anticipated to adjust to the brand new mattress with out proscribing loans,” says the statement.

In addition, to reinforce the resistance of the system against shocks in a moment of high uncertainty such as the current one, “banks needs to be inspired to take care of enough volunteer mattresses by way of a prudent distribution of dividends,” the IMF technicians indicate.

Real estate surveillance

The IMF considers that “the speedy improve in housing costs doesn’t increase dangers to monetary stability at this stage, however deserves to watch out rigorously and should be addressed above all with coverage measures to stimulate the housing provide.” As the agency stands out, in real terms, housing prices remain significantly below the 2007 levels. It also indicates that the leverage of households is low and that there are no signs of a substantial relaxation of the loan concession criteria. “However, if indications of upper threat loans are detected, preventive macroprudential instruments oriented to debtors needs to be thought-about,” he clarifies.

Where does the IMF see a problem is in access to housing, as a result of prices and rental increases, along with the still high indebted costs. “The package deal of measures introduced by the Government in January is effectively acquired usually, though the primary goal ought to proceed to extend the provide, particularly by way of the approval of the modifications to the Land Law, the velocity of the bureaucratic procedures for acquiring licenses, in addition to the enlargement of the Social Housing Park,” says the declaration.

According to the fund, rental prices control and abandoning in case of verifying that it reduces the quantity or quality of the regular offer of rentals, or that hinders access by lower income households must be re -evaluated.

In areas the place land shortage is much less acute, technicians consider that entry to housing property could be improved by way of carefully centered demand measures, such because the not too long ago launched program of public ensures for the acquisition of first dwelling geared toward younger folks.