Greece’s new bank-failure law puts uninsured depositors at risk because it ranks them below state claims in an insolvency or resolution, Moody’s Investors Service said on Monday. The law is “credit negative” for bondholders and uninsured depositors because of the limits on using public funds for bank resolution and because of the burden-sharing for all unsecured creditors starting next year, Moody’s said.
The Greek law passed last week as a precondition for further bailout talks transposes the European Union’s Bank Recovery and Resolution Directive. It differs from the rules in other EU countries, however, in that “Greek state deposits together with all state claims” would take losses only after deposits of more than 100,000 euros ($111,000), Moody’s said.
Under BRRD, a lender can be sold, a bridge institution can be created, or good and bad assets can be separated from each other and assigned to different entities. These measures can be used alone or in combination and are available immediately. A bail-in tool becomes available on January 1sy, 2016.
full article Bloomberg
According to Greek media, 8 billion euro left bank deposits in the month of June. The capital controls imposed on June 29th put a brake to the drain of the four systemic Greek banks.
PS we live in a country of total asset-stripping.
Treuhand already starts, Austrian state run ÖBB wants Trainose but not for ultra-cheap or for hyper-free, nope: Greece must pay for her trains being run by clever Austrians, as CEO Christian Kern excludes a “positive price”.
The plans of COSCO regardig fast-track to Belgrad and the deal with HP-computers are not unknown in Vienna.
If this is really a Greek law, you might with the same right call the ex FM an Australien or American.