/ world today news/ The possible bankruptcy of Greece will lead to a cut (between 27% and 55%) of the sums of the Greeks’ deposits held by the banks in the country. This is the assessment of the Bloomberg agency, quoted by TASS. However, this can only happen under certain conditions.
“If the supporters of the “no” rejecting the proposals of the international creditors win in the upcoming referendum on July 5, then leaving the euro zone will be the most likely scenario, and if they win the “yes” votes, then the probability that Athens will lose the membership is in the euro area will significantly decrease,” writes Bloomberg.
In the event of a bankruptcy, the “haircut” (loss of value) of the Greek bonds provided by the banks to the ECB as a pledge to obtain financing under the emergency liquidity assistance program (ELA) will reach 75% or even 90%. Then the Greek banks will be forced to undergo a “haircut” of the deposits for 33 billion or 67 billion euros (currently the deposits of individuals and companies are about 120 billion euros), the agency notes. In other words, in case of bankruptcy of the country, depositors can lose from 27% to 55% of their sums.
The bonds are now accepted by the ECB as collateral at a discount of 23%, and according to Bloomberg, “the need for a haircut will only arise if this discount exceeds 60%”.
The Greek authorities assure the population that there will be no “cutting” of deposits and that they are guaranteed. Finance Minister Yanis Varoufakis emphasized that “in no case will banks be rehabilitated at the expense of depositors”. Indeed, on June 28, the head of the financial department claimed that the issue of control over the movement of capital did not stand, but it became a reality a few hours after this statement, TASS recalls.
Washington / USA
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