Greek minister moves to allay fears of bank run
Gikas Hardouvelis says probability of a bank run is small and deposits are safe, as Greece prepares for snap general election
Helena Smith in Athens
The Guardian, Friday 9 January 2015 17.31 GMT
Greece’s finance minister has sought to allay fears that political uncertainty prompted by snap polls later this month will spark a run on banks, amid worrying signs that savers are rushing to withdraw deposits.
As Athens prepares for a general election on 25 January, Gikas Hardouvelis said the banking system was safe, although he acknowledged mounting evidence that the rich were transferring money abroad. In December alone, €2.5bn left lenders.
“The probability of a bank run is very small; the public understands that deposits are safe,” he said, adding that around €70bn had left Greece since its economic meltdown five years ago.
Hardouvelis conceded that the sudden increase in outflows at the start of a campaign that is expected to become increasingly caustic could not be taken lightly.
“It is still the beginning and we have to watch depositors’ behaviour very carefully,” he told the Wall Street Journal. “You don’t just need a stable government to be formed quickly, you need a government with a clear policy forward.”
Greek investors, led by shipowners and other industrialists, have stepped up transfers of funds since inconclusive presidential polls in parliament forced the two-party coalition government to call the election. One insider said bankers were being instructed to make multimillion-euro transfers daily.
More:
http://www.theguardian.com/world/2015/jan/09/greek-finance-minister-bank-run-election
quote:
"Der Spiegel, which has good links to Germany’s intelligence service, also reported that a Greek euro exit was considered inevitable if the radical leftists won."