ECONOMY

Eurogroup: No haircut on deposits

eurogroup-no-haircut-on-deposits

The president of the Hellenic Bank Association, Louka Kasteli, has called the Eurogroup’s decision guaranteeing Greek savings and for there to be no haircut on deposits a significant step for depositors to regain trust in the country’s banking system.

In comments made to Greece’s Athens-Macedonian News Agency, Kasteli said: “The decision of the Eurogroup for there to be no haircut on deposits, regardless of size, as well as the immediate availability of 10 billion euros for the recapitalization of Greek banks are important steps in rebuilding trust in the Greek banking system. Now it is the turn of Greek citizens to show their practical support for the banking system.”

European Commission spokesperson Annika Breidthardt confirmed the Eurogroup’s decision to earmark a total of 25 billion euros for the recapitalization of Greek banks, subject to stress tests.
She also confirmed that the deposits of Greek savers were guaranteed in light of the Eurogroup’s decision, emphasizing that there would be no haircut on deposits under any circumstances for the full duration of the bailout program.