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"Bank deposits are fully secured with no risk"

Deposits in Greek banks are fully ensured regardless of the size of a "haircut" on Greek bonds, Greek banking executives reiterated to the AMNA on Tuesday. The executives said bank deposits are fully secured and have face no risk. After EU leaders agree on the size of a haircut in Greek state bonds, the Bank of Greece will ask banks and their shareholders to proceed with share capital increases in order to ensure minimum capital adequacy ratios. In case Greek banks are unable to respond to these demands, the Financial Stability Fund will ostensibly contribute the necessary funds to achieve a recapitalisation of banks, which will suffer from a write-off in Greek bonds.

Greek banks will also have the opportunity to resort to the European Financial Stability Fund, although decisions on the issue were still pending.

In any case, Greek banking executives stressed that citizens deposits were fully secured and urged depositors to remain calm and not to rush into any hasty decisions based on hypothesis that there was a risk of expected decisions over Greek debt.

Finance Minister Evangelos Venizelos has repeatedly reassured that deposits are fully secured.


Wednesday, October 26, 2011