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Greek PM Samaras assures “bank deposits are safe”, rules out “tax on deposits over €100K”

OK, Greek bank deposits are safe. After several government officials assuring Greeks, also prime minister Antonis Samaras also felt the need to assure depositors that their money in Greek banks are not at risk. Furthermore, the Greek prime minister ruled out a tax on deposits over 100,000 euro. All these assurances are possible due to banks recapitalization.

Greek bank deposits are safe and the country’s lenders are protected due to a recapitalization scheme which will be completed by the end of April, Prime Minister Antonis Samaras said on Saturday.

In an interview with Imerisia, Samaras ruled out a tax on deposits over 100,000 euros ($131,000) allaying fears of austerity-hit Greeks that their savings may be at risk after a raid on Cyprus depositors as part of the island’s bailout.

“No, I’m categorical. There is no such issue. We have no reason to think about it,” he said. “The Greek banking system is shielded due to the recapitalization.”

Greek banks are consolidating to deal with a deep recession.

The banking sector was shaken this week by the unexpected suspension of National Bank’s (NBGr.AT) plans to integrate its newly acquired rival Eurobank (EFGr.AT) after the lenders said they were unlikely to raise enough capital to stay private.

Samaras said the deal depends on the recapitalization. Under the terms of the plan, a minimum amount of new equity must be raised from the market for the banks to remain privately run.

“If the two banks raise the funds to recapitalize alone, then they will decide if they still want to merge. If they don’t raise the demanded funds they will fall under the control of the Hellenic Financial Stability Fund which will decide if their merger is beneficial,” he said. (Full story Reuters)

 

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3 comments

  1. Pft! I’m sure this is only for the time being. They will probably spring it on us when we least expect it. I believe that Cyprus is a template. Just a matter of time. Remember when Samaras promised no more taxing through the Electricity Bills (amongst others) ??? Are they not trying to find a different name for it now??? They are not to be trusted.

    • keeptalkinggreece

      sure, they prepare this EU-directive in the Eurogroup and it will refer to banks that go under. However Samaras’ argument is that since Greek banks undergo recapitalization, there is no fear one bank will go under.

      • They’ve got to pop up first before they go under again. And that will take some doing, possible involving a Great Greek Bank Robbery, mirrored on the Great Cyprus Bank Robbery. At this stage you really can’t put anything past them, and believing any one of them at face value is a really big mistake. Isn’t believing them what got us here in the first place…