Cyprus bailout: Greeks do not feel well either… FinMin Stournaras’ statement

Posted by in Economy

The eurogroup decision to violently grab private bank deposits in Cyprus could not but trigger a panic also in Greece. And most probably to the citizens of every economically weak EU country.

- My father, 85, came early in the morning shouting, we should withdraw our weak deposit from the bank, as soon as it opens next Tuesday.

- An aunt called a little later and asked whether she should withdraw the family’s money from the bank.

- A friend warned, that this unprecedented decision might be applied to Greece too, should the necessity for a second ‘haircut’ arise.

Media reports: ATMs of Cypriot bank branches in Greece operate as usual.

Average Greeks are not the only ones who seem to be in panic this Saturday, with banks closed until Tuesday, due to Clean Monday holiday.

Greek finance minister, Yiannis Stournaras saw the obligation to make a statement Saturday noon, trying too calm down -at least – Greek savers with deposits in Cypriot banks operating in Greece.

“The Eurogroup decision explicitly excludes deposits in branches of Cypriot banks in Greece and absolutely ensures the stability of the Greek banking system. ” (Greek Finance Ministry)

According to economic news portal Capital.gr, the branches of Cypriot banks in Greece would be absorbed by banks with headquarters in Greece after the financial audit is concluded.

New York Times reported, that Jeroen Dijsselbloem, head of the Eurogroup,  declined to rule out taxes on depositors in other countries besides Cyprus in the future, but insisted that such a measure was not being considered.

PS To tell you the truth,  I am not sure, whether Stournaras’ statement will manage to restore confidence in the Greek banking system.

Greeks are cautious when it comes to politicians’ and official’s “promises” anyway…