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Greeks will be allowed to withdraw 300 euro per week in the event of a banking crisis

10 February 2015 / 12:02:17  GRReporter
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The Bank of Greece has developed a Plan B in the event of a banking crisis, if the government of Alexis Tsipras and Greece’s lenders fail to agree. moneyonline.gr cited former central bank governor George Provopoulos who said that Greece will implement a plan similar to that applied by Cyprus two years ago, when there were restrictions on cash withdrawals from banks and the maximum amount allowed was 300 euro per week.
     Of course, this extreme scenario will be implemented in the case of panic withdrawals of deposits and banks will need 24 hours to begin to apply it. The plan is agreed between the Bank of Greece and the four largest commercial banks in the country, namely the National Bank of Greece, Piraeus Bank, Alpha Bank and Eurobank.
     Currently, the situation is under control, as assured by financial experts. Greek banks still have guaranteed liquidity from the Emergency Liquidity Assistance of the European Central Bank, and if an agreement with the lenders is achieved, they may again begin to receive direct funding from Frankfurt against Greek government bonds.
     Furthermore, at the end of 2014, the Bank of Greece had secured cash reserves worth 35 billion euro to be able to respond to the coming difficult weeks for Greece. Of course, part of the reserve is already held by individuals because 15-17 billion euro have been withdrawn from Greek banks since December 2014.

Tags: Bank of GreeceBanking crisisPanicWithdrawal of depositsEuro in cashEuropean Central Bank
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