Greece's Chief Banker: No haircut for the Greek banks' deposits

 

 

BoG chief: Deposits in Greece totally secure

 

10/ 04/ 2013

AMNA--Central Bank of Greece (BoG) governor George Provopoulos assured that deposits in the Greek banking institutions are totally secure, regardless of the size of the sum, speaking to parliament's standing committee on financial affairs on Wednesday.
The central bank chief attributed the recent suspension of the merger of National Bank of Greece (NBG) and Eurobank, two of Greece's four systemic banks, to their inability to raise the required 10 percent of their recapitalization from private investors, but explained that the final decisions, in the event that generation of the 10 percent by the two banks proves not feasible, will be taken by the Hellenic Fiscal Stability Fund (HFSF) on the basis of the wider public interest.
Provopoulos further defended the BoG's choices in the face of the crisis in Cyprus but did not elaborate, citing the confidentiality of the board meetings of the European Central Bank (ECB), and stressed that deposits in Greek banking institutions are totally secure, regardless of their size or bank.