Greek banks prepare plan to raid deposits to avert collapse

Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears the country is heading for financial collapse, bankers and businesspeople with knowledge of the measures said on Friday.

The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said.

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Depositors can withdraw only €60 a day from bank ATM cash machines, while requests to transfer funds abroad have to be approved by a special finance ministry committee in co-operation with the Greek central bank.

Two senior Athens bankers said the country had only enough cash to keep ATMs supplied until the middle of next week. This followed the ECB’s decision this week not to increase Greece’s allocation of emergency liquidity assistance after the bailout programme ended on June 30.

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Greek deposits are guaranteed up to €100,000, in line with EU banking directives, but the country’s deposit insurance fund amounts to only €3bn, which would not be enough to cover demand in case of a bank collapse.

With few deposits over €100,000 left in the banks after six months of capital flight, “it makes sense for the banks to consider imposing a haircut on small depositors as part of a recapitalisation. . . It could even be flagged as a one-off tax,” said one analyst.

FK – How far are we from this? And far worse than this?:

FK – Are gas masks legal there? Are they real ‘anarchists’ or commies/paid black blockers etc. posing as such? Do they have a minority population at all? Is this what it looks like when the parasites stop getting their checks?

When it happens here we need volunteers to go to the big cities and help direct the ‘rioters’ to the neighborhoods where the rich white “Liberal”(commie) trash lives.

FK – Here’s the question that will matter: ‘Got Ammo?’