Greek Banks Considering 30% Haircut On Deposits Over €8,000

Last week in “For Greeks, The Nightmare Is Just Beginning: Here Come The Depositor Haircuts,” we warned that a Cyrpus-style bail-in of Greek depositors may be imminent given the acute cash crunch that has brought the Greek banking sector to its knees and forced the Greek government to implement capital controls in a futile attempt to stem the flow.

Unfortunately for Greeks, the ECB has frozen the ELA cap, meaning that as of last Sunday, Greek banks were no longer able to meet deposit outflows by tapping emergency liquidity from the Bank of Greece.

Now, with ATM liquidity expected to run out by Monday and with the country’s future in the eurozone still undecided, it appears as though Alexis Tsipras’ promise that “deposits are safe” may be proven wrong.

According to FTGreek banks are considering a depositor bail-in that could see deposits above €8,000 haircut by “at least” 30%. 

FT:

Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears

The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said.

More…

    
Plugin by: PHP Freelancer
This entry was posted in Editorial. Bookmark the permalink.
0 0 votes
Article Rating
1 Comment
Oldest
Newest
Inline Feedbacks
View all comments
phil
phil
9 years ago

this is coming to America, hedi ha, hedi ha, living in America hedi ha, hedi la hand of free money only for illegal alien ameicans, OTM’s and illegal islamic africans