Unlike on Cyprus, where the government is confiscating up to 80 percent of bank deposits over 100,000 euros ($130,000) to trigger an international bailout, Greece will not raid bank accounts of depositors as it continues to struggle with a faltering economy, Prime Minister Antonis Samaras said on April 13.
Samaras said a recapitalization of the banks – with 7.2 billion euros ($9.44 billion) coming from international lenders along with more bailouts – means there is no need to look at banks as a source of cash that the country can seize when it wants.
In an interview with the business newspaper Imerisia, Samaras ruled out a tax on deposits over 100,000 euros despite some fears that Greeks could lose part of their savings. “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,” he said.
Greek banks are consolidating to deal with a deep recession although a planned merger of the National Bank of Greece with Eurobank, which would have created the nation’s biggest bank, has been shelved. 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 (HFSF) which will decide if their merger is beneficial,” he said.
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