NewsWhore
06-02-2011, 04:10 PM
Writing in today's Diario Libre, economist Gustavo Volmar comments that while the tax increases presented to the Senate by the President were adorned with the carrot of the money serving to increase allocations for the Ministry of Education, "the real purpose is to resolve the government's fiscal deficit."
"The measures include a 1% tax on the banks' financial assets, in exchange for eliminating the tax on financial transactions". However, he says that the elimination will be phased in gradually over three years. That means in the first and second year, both taxes will be levied. The 1% will be a cost for the banks that will expand the spread between the interest rate they charge for loans and what is paid on deposits, he writes. But he speculates it is likely that the increase will be primarily reflected in the lending rates.
On the positive side, he said it could have a collateral effect on stimulating the stock market. "The more expensive credit will increase the financial cost of companies and quotas of loans and could push borrowers to take out loans abroad," he writes. He said that borrowers would be pushed towards the stock market, instead of taking out loans, which will result in more commercial paper issues".
More... (http://www.dr1.com/index.html#7)
"The measures include a 1% tax on the banks' financial assets, in exchange for eliminating the tax on financial transactions". However, he says that the elimination will be phased in gradually over three years. That means in the first and second year, both taxes will be levied. The 1% will be a cost for the banks that will expand the spread between the interest rate they charge for loans and what is paid on deposits, he writes. But he speculates it is likely that the increase will be primarily reflected in the lending rates.
On the positive side, he said it could have a collateral effect on stimulating the stock market. "The more expensive credit will increase the financial cost of companies and quotas of loans and could push borrowers to take out loans abroad," he writes. He said that borrowers would be pushed towards the stock market, instead of taking out loans, which will result in more commercial paper issues".
More... (http://www.dr1.com/index.html#7)