When five Sunday newspapers speak about the safety of savers’ deposits in their front pages, I think, it’s time we should start make thoughts about “how secured are deposits in Greece?” The Cyprus example might be “a template”, after all, as eurogroup head Jeroen Dijsselbloem recently said. Deposits in Greek banks may be at risk after all despite the assurances of finance minister Yiannis Stournaras that “deposits are shielded”.
TYPOS TIS KYRIAKIS: Survival guide for deposits – which one are secured
TO VIMA: how secured are deposits?
PROTO THEMA: Deposits guaranteed only if banks collapse
KYRIAKATIKI DIMOKRATIA: (30%) haircut in debts and deposits
REAL NEWS: The whole truth about deposits – 61% of Greeks fear deposits will undergo haircut
front pages via Zougla.gr
What is clear is that EU regulations guaranteeing deposits up to 100,000 euro refer to cases when banks are collapsed. The esteem ladies and gentlemen of the european Union, the eurozone and so on, do not -and cannot – guarantee deposits over or bellow 100,000 euro form ‘haircut’.
And what it could be also clear in case of Greece is the deposits might be at risk, if the country should seek another debt ‘haircut’. I do truly believe that Germany would only approve such a debt haircut only if depositors pay their share.
Greek deposits’ haircut since May 2010
Not that Greeks’ deposits have not undergone a haircut in the last three years, since the country sought the ‘rescue’ by the International Monetary Fund.
More than 1,3 million people without job do certainly grab their savings to come along through the months. If they do not have savings it’s their relatives and friends using their savings to lend a helping hand to those unemployed.
Another group of recession-hit Greeks who may have been using their savings is the one consisting of employees who do not get paid in time. they may get just 150-200 euro per month, if at all. It’s “salary in installments”, so to say.
Not to mention the savings of households living with low pensions, with chronic ill or face conditions that force them to use savings to make ends meet after severe cuts in health and other sectors.
In times, where every taxpayer in Greece is being charged with extraordinary so-called “emergency” or “solidarity” taxes, where tax lowest cap has disappeared and wages have dramatically dropped, Greeks have been experiencing deposits’ haircut and thus since three years.
The only difference to Cypriots, is that their haircut occurred from one day to the next.
Real News writes also on its front page that the Troika plans to limit the local banking sector with 40% less branches, up to 25,000 less employees.
PS the Greek dream to invest in properties has been blasted off after the unbearable property taxes. Now it looks that even the alternative to ‘save money’ is not that safe anymore either…
How about this: In Holland you are being taxed on the amount of cash you have in your pocket or home. Also on public transport cards which you can fill with a travel amount. Gift vouchers. Physical gold or silver as bullion coins or as little bars and so on. And of course you are being taxed on your assets such as investments and savings (home and abroad).
It looks like there is room for even wider haircuts in Cyprus and Greece?
This is geting more confusing by the day. In an interview with Herman Van Rompuy, published today in the Flemish weekly “De Zondag”, the interviewer specifically asks the EC president about the safety of the deposits in European banks, following the decision to plunder the deposits in the Cypriot banks.
(Is this not a free ticket for other countries in trouble to take people’s savings?)
1) they tell half truth so people leave their savings at the banks 2)as Haiku poet and with Haiku having a simple poetry form, Herman recites half the poem.
I have only one question to ask….How many assurances have been conveyed to the public by any Minister of this government – and have been honored ?
so many… I don’t remember which one were honored & not lol
I wouldn’t keep any money in Greece. That is if I had any money that is not spent as soon as it comes into my furry hand.
Greece & Cyprus seem so much alike that I’m afraid the money will evaporate in Greek banks too. I’d keep it in Canada if I had money. Canada is the best country in the world since they have the best of both worlds, French and English.