EU: Only deposits under 100.000 are guaranteed in Cyprus

a News
a 6 News

The Council of the EU made it clear in a written reply to Cypriot MEP Antigoni Papadopoulou on 24 February 2014 that "deposits are only guaranteed if they do not exceed EUR 100.000, a threshold above which protection for eligible deposits."

The European Council reply states that, under the Interim Agreement reached on 17 December 2013, the Council, the Commission and the European Parliament, Cyprus and the other EU Member States “are obliged to ensure that the Guarantee Systems Deposits (SECs) will be able to make payments to eligible depositors when deposits become unavailable. ”

The reply also states that "TECs have an obligation to raise any available funds through contributions from their members at least once a year" and that "only deposits not exempted from the Directive are eligible and can be protected by ΣΕΚ. ”

Ms. Papadopoulou had asked whether the Council believes that it would be possible and beneficial to offer a state guarantee for all deposits in Cypriot banks, in order to restore confidence and reduce the risk of mass outflow of deposits in case of removal of restrictions on transactions. funds.

He also asked if there could be a commitment from the relevant European institutions that they would provide, if necessary, the necessary liquidity coverage, as recommended in the above-mentioned report.