Greece Tells Investors It Has No Plans for Extra Tax on Banks

(Bloomberg) -- Greece isn’t planning to impose any extraordinary tax on its banks, according to people familiar with the matter.

Prime Minister Kyriakos Mitsotakis conveyed that message at an event in London on Monday hosted by Morgan Stanley and the Athens Stock Exchange, the people said, speaking on condition of anonymity because the conversation was private. A government spokesman said last week that no decision on a potential levy had been made.

Following Spain’s move to increase the windfall tax on its lenders, markets were worried that a similar measure could be enforced on Greek banks — especially given their return to profitability and the excess liquidity they have at the moment.

The index of Greek banking stocks in Athens rose as much as 4.7% on Monday, the most since November 2023. Lenders have also recently announced plans to reduce a deferred tax credit faster than initially scheduled, capping a legacy of Greece’s debt crisis.