FT: Greek banks considering bail-in “haircut” of at least 30% on deposits above €8,000

Author: Eamonn Sheridan | Category: News

The Financial Times reports Greek banks are preparing contingency plans for a possible "bail-in" of depositors.

The FT quotes  from "bankers and businesspeople with knowledge of the measures said on Friday".

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

The FT goes on:

Bail-in could resemble the rescue plan agreed by Cyprus in 2013, when customers' funds were seized to shore up the banks, with a haircut imposed on uninsured deposits over €100,000

"It [the haircut] would take place in the context of an overall restructuring of the bank sector once Greece is back in a bailout programme" said one person following the issue. "This is not something that is going to happen immediately." Eurozone officials said no decision had been taken to wind up any Greek banks or initiate a bail-in of depositors, a process that would be started by the ECB declaring the banks insolvent or pulling emergency loans.

More at the Financial Times (gated, but can be read with a free registration): Greek banks prepare plan to raid deposits to avert collapse

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