Greece to raise bank guarantee to $136,000
ATHENS -- Greece will submit legislation to parliament "soon" to increase its guarantee for bank deposits to 100,000 euros, or $136,000, for three years to help build confidence in the banking system amid the world financial crisis, the finance minister said Wednesday.
The European Union agreed during a finance ministers' meeting in Luxembourg Tuesday to guarantee private savings of up to 50,000 euros for at least one year, in a measure of coordinated action against the crisis. The current EU minimum stands at 20,000 euros, or $27,265.
Greece's government has already made a political commitment to guarantee all bank deposits, regardless of the amount, but Finance Minister George 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.
"That shows that countries can use it for longer. Our initial decision is to put it into legislation for at least three years. That is what we will do, respecting the minimum that has been set," Alogoskoufis said.
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