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BoG’s Provopoulos: “No bank deposits haircut in the foreseeable future”

When is the future “foreseeable”? What is the time span in which we can claim we can ‘foresee’ the future? The governor of Bank of Greece, Giorgos Provopoulos, said that there is no way for bank deposits to undergo a haircut in the foreseeable future.”

Speaking with representatives of bank personnel unionists, Provopoulos said further that “banks have already overcome the basic difficulties” and added that “the problem the bank now face are the increased number of debts that remain not served.”

Restructuring programs will “show” the new capital requirements of the banks, which in each case will be covered , because there is sufficient “cushion” of funds.

Regarding the liquidity in the market , Provopoulos noted that the limited credit expansion is not only a Greek , but the pan-European phenomenon, “because there is still an increased credit risk , but in our country our psychology will change and move in a positive direction when the GDP will start increasing,” Provopoulos added.

I didn’t know that lack of liquidity was a psychological issue, but if the man of numbers claims so…

PS with my psychology still down  will I manage to go to sleep in the assurance that nobody can foresee the future?

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