Greek minister moves to allay fears of bank run
Source: The Guardian
Greeces 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