<TABLE class=table_back cellSpacing=0 cellPadding=0 width="92%" align=center border=0><TBODY><TR><TD class=en_content_title width="66%" colSpan=2>Greece to raise bank guarantee to euro100,000
</TD></TR><TR><TD colSpan=2 height=8></TD></TR><TR><TD colSpan=2></TD></TR><TR><TD colSpan=2 height=5></TD></TR><TR><TD class=author width="59%">Associated Press
2008-10-08 08:54 PM </TD><TD class=count_top vAlign=top width="34%">
Finance Minister George Alogoskoufis said Greece will submit legislation to Parliament soon to increase its guarantee for bank deposits to euro100,000 for three years to help build confidence in the banking system amid the world financial crisis.
The European Union agreed during a finance ministers' meeting in Luxembourg Tuesday to guarantee private savings of up to euro50,000 (US$68,160) for at least one year, in a measure of coordinated action against the crisis. The current EU minimum stands at euro20,000 (US$27,265).
Greece's government has already made a political commitment to guarantee all bank deposits, regardless of the amount, but Alogoskoufis said he would submit legislation to guarantee savings of euro100,000 for three years.
"The legal minimum of euro20,000 that exists now in Greece and in many other European countries will be increased to euro100,000. This will happen very soon with a law that we are preparing to submit to Parliament," Alogoskoufis said in Athens Wednesday.
"I want to stress that beyond this legal initiative, our political commitment is still in force guaranteeing the full amount of deposits beyond the legal minimum."
Alogoskoufis reiterated that the Greek banking system is not at risk from the global financial crisis, but said the measures aim to calm jittery savers.
He noted that the EU decision was for the increased deposit guarantee to stay in effect for at least a year.
Greece's central bank governor, George Provopoulos, said the planned legislation _together with government pledges to guarantee all deposits _ would stop a small leakage of deposits from small to larger banks.
Provopoulos warned that the Bank of Greece would notify judicial officials if it received formal complaints of commercial banks spreading malicious rumors to poach custom from their competitors.
"We have received anonymous complaints that ... some banks due to the excess zeal of their executives, or out of naivete or low cunning, are pushing depositors in their direction at the expense of other, smaller banks," Provopoulos said. "There have been such movements, luckily not on a large scale."
"Any complaints made on the record will be immediately forwarded to a prosecutor," he added. Provopoulos said Greece's banking system "remains fundamentally healthy, safe and stable."
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</TD></TR><TR><TD colSpan=2 height=8></TD></TR><TR><TD colSpan=2></TD></TR><TR><TD colSpan=2 height=5></TD></TR><TR><TD class=author width="59%">Associated Press
2008-10-08 08:54 PM </TD><TD class=count_top vAlign=top width="34%">
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Finance Minister George Alogoskoufis said Greece will submit legislation to Parliament soon to increase its guarantee for bank deposits to euro100,000 for three years to help build confidence in the banking system amid the world financial crisis.
The European Union agreed during a finance ministers' meeting in Luxembourg Tuesday to guarantee private savings of up to euro50,000 (US$68,160) for at least one year, in a measure of coordinated action against the crisis. The current EU minimum stands at euro20,000 (US$27,265).
Greece's government has already made a political commitment to guarantee all bank deposits, regardless of the amount, but Alogoskoufis said he would submit legislation to guarantee savings of euro100,000 for three years.
"The legal minimum of euro20,000 that exists now in Greece and in many other European countries will be increased to euro100,000. This will happen very soon with a law that we are preparing to submit to Parliament," Alogoskoufis said in Athens Wednesday.
"I want to stress that beyond this legal initiative, our political commitment is still in force guaranteeing the full amount of deposits beyond the legal minimum."
Alogoskoufis reiterated that the Greek banking system is not at risk from the global financial crisis, but said the measures aim to calm jittery savers.
He noted that the EU decision was for the increased deposit guarantee to stay in effect for at least a year.
Greece's central bank governor, George Provopoulos, said the planned legislation _together with government pledges to guarantee all deposits _ would stop a small leakage of deposits from small to larger banks.
Provopoulos warned that the Bank of Greece would notify judicial officials if it received formal complaints of commercial banks spreading malicious rumors to poach custom from their competitors.
"We have received anonymous complaints that ... some banks due to the excess zeal of their executives, or out of naivete or low cunning, are pushing depositors in their direction at the expense of other, smaller banks," Provopoulos said. "There have been such movements, luckily not on a large scale."
"Any complaints made on the record will be immediately forwarded to a prosecutor," he added. Provopoulos said Greece's banking system "remains fundamentally healthy, safe and stable."
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