ATHENS – Greece – As predicted by the Daily Squib in 2014, Greek banks are preparing contingency plans for a “bail-in” of depositors amid fears the country is heading for financial collapse.
“If the Greeks do not want to play the easy way, maybe we need to up the game,” an EU official from European Central Bank revealed late Friday.
In one of our usual tongue-in-cheek articles published in 2014, we accurately predicted there would be a Cyprus style bail-in in Greece. This time, in 2015, the Financial Times is reporting how the banks will take Greek deposits whether they like it or not. The only problem is, they should have done this months ago as the capital flight has been massive, the ‘poor poverty stricken’ Greeks transferred 180 billion euros out of the banks already since the election of anti-austerity party Syriza..
Monday morning will be the moment when Greeks wake up to the realisation that all deposits above €8,000 will take a 30% haircut when they vote for a No in the referendum.
Much like the Greek Cypriot bail-in that occurred in 2013, the Greek Cypriots tried to use some of the same tricks the mainland Greeks are utilising to stitch up the EU.
“If there is any money left in Greek banks it would be a miracle for the creditors, therefore conducting a bail-in on the Greeks may not garner much funds, but we will have to see,” a spokesman for one of Greece’s many creditors revealed on Saturday.