Provopoulos Says Greek Deposits Safe

With media speculation that the apparently abandoned proposed merger of National Bank of Greece and Eurobank could lead to the government going after bank deposits as Cyprus did, the head of the central bank, George Provopoulos, reiterated that all bank accounts are safe regardless of how big they are.
Cyprus is confiscating up to 80 percent of bank accounts over 100,000 euros ($130,000) on the orders of international lenders in return for a 10 billion euros ($13 billion) bailout. While the seizure is hitting hard at foreign depositors, especially rich Russians, it has nearly wiped out the life savings of others who set aside money for years for their families, health care and college.
The Cyprus experience has some Greeks anxious, especially as the government has not yet recapitalized the country’s banks, which – like those on Cyprus – were brought to the edge of ruin when the Greek government devalued its bonds by 74 percent, hitting investors hard.
But Provopoulos told Parliament that the coming recapitalization, an influx of loans from international lenders that has stopped talk for now of Greece being forced out of the Eurozone, and an increasing return of deposits to the banks has steadied the industry. Greece΄s bank recapitalization scheme and continued deposit inflows will help the country pull itself out of a deep recession, he told parliament.
He also said he was optimistic that Greek lenders Alpha Bank and Piraeus Bank would be able to raise enough capital from investors to remain in private hands after their planned recapitalization.