Greek Prime Minister Assures No Deposit 'Haircut'
According Greek Prime Minister Antonis Samaras, Greek bank deposits are safe and the insitutitions are well protected. This was achieved through a recapitalization scheme that would be fulfilled by the end of April.
During an interview with Imerisia, the Greek PM said that the tax on deposits above Eur100,000 or US$131,000 are 'ruled out'. This allays fears that the belt tightening that the Greek economy has been facing would affect their hard earned deposits, similar to the 'haircuts' on deposits as a condition to the Cypriot bailout.
Samaras said, "No, I'm categorical. There is no such issue. We have no reason to think about it. The Greek banking system is shielded due to recapitalization."
After major events such as the suspension of the National Bank's plan to integrate with acquired rival Eurobank as lenders admitted they may not have enough funds to keep the insitutution private. Consolidation is the current means that Greek banks are able to cope amidst the deep recession.
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