Guarantees on deposits not to be law

Economy and Finance Minister Giorgos Alogoskoufis is seen being mobbed by reporters after his meeting with Prime Minister Costas Karamanlis at the latter’s office yesterday. The minister did not state anything about plans to guarantee deposits, but one ministry official was quoted as saying that this was a mere political commitment and the government does not intend to table a bill on the issue the way that the Republic of Ireland has done. Reports yesterday suggested that the government intends to ask the competent authorities in the European Union for an increase in the ceiling on guaranteed deposits under the Deposits Guarantee Fund (TEK) from 20,000 euros to 30,000 euros.