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Athens News Agency: News in English, 08-10-09
CONTENTS
[01] Bill raises bank deposit guarantee
[01] Bill raises bank deposit guarantee
Economy and Finance Minister George Alogoskoufis on Thursday tabled, in
Parliament, a more-or-less exprected draft bill raising the minimum
guarantee on bank saving deposits to 100,000 euros, up from 20,000
euros currently, and for a period of three years.
Speaking to reporters, the minister reiterated that the domestic
banking system was absolutely safe and solvent and noted that the draft
legislation was part of the government's commitment to offer state
protection to all savings.
Meanwhile, Christos Gortsos, secretary-general of the Hellenic Bank
Association, addressing a parliament committee considering draft
legislation aimed at offering greater protection to borrowers, said
Greek banks have not exposed themselves to "toxic" bonds, since they
had the opportunity to enter a deregulated consumer and housing credit
market in Greece as well as to expand in Balkan markets, achieving high
growth rates.
"It would be extremely odd to invest in such securities when one has
the opportunity for organic profitability through traditional retail
banking operations in a geographically expanded market," Gortsos said.
He noted that the Greek banking market was not exposed to CDOs, nor was
it largely exposed to the interbank market, two factors offering
additional stability for the system.
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