Greek minister moves to allay fears of bank run
Source: The Guardian
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.
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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.
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“The rich and affluent have been telling their private bankers to transfer funds,” Theodore Pelagidis, a professor of economics and senior fellow at Brookings Institute, told the Guardian. “And that reflects the mounting concern over how Syriza will behave after the election.”
Read more: http://www.theguardian.com/world/2015/jan/09/greek-finance-minister-bank-run-election
