21 Apr 2010

IMF calls for 'radical' bank taxes to pay for bail-outs

1:14 pm on 21 April 2010

The International Monetary Fund (IMF) is calling for new taxes to be imposed on financial institutions to pay for any bail-outs that might be needed in the future.

The proposals are contained in a paper prepared for finance ministers from the Group of 20 countries, according to the BBC.

It reports that the global proposals are more radical than most had anticipated.

All institutions, including insurers and hedge funds, would pay a bank levy - initially at a flat-rate - and also face a further tax on profits and pay.

The measures are designed to make banks pay for the costs of future financial and economic rescue packages.

The plans will be discussed by G20 finance ministers this weekend.