Weekend Economists Salute Ruin July 3-5, 2015

[Demeter]

59. Greek bank official dismisses 'haircut' report as "baseless"

THIS SOUNDS LIKE THE OFFICIAL DENIAL WHICH CONFIRMS THE ACCUSATION...

http://www.cnbc.com/id/102809199

The Financial Times reported on Friday that Greek banks were preparing contingency plans for a possible "haircut" on deposits amid fears of financial collapse, a report the country's banking association said was "completely baseless". The report came two days ahead of a referendum in which Greeks will accept or reject the tough terms of an aid deal with international creditors, a vote with the potential to decide the country's future in the euro zone. Greek leaders have repeatedly dismissed the possibility they will have to "bail-in" depositors to prevent the collapse of the banking system. But citing bankers and businesspeople with knowledge of the measures, the Financial Times reported: "The plans, which call for a 'haircut' of at least 30 percent on deposits above 8,000 euros, sketch out an increasingly likely scenario for at least one bank."

The report quoted a source as saying: "It (the haircut) would take place in the context of an overall restructuring of the bank sector once Greece is back in a bailout programme."

The head of Greece's Bank Association dismissed the report as "completely baseless".

Louka Katseli, who also chairs the National Bank of Greece , told Skai TV that suggestions that authorities were planning a raid on deposits belonged "only in the sphere of fantasy."

"There are no such scenarios at any Greek bank, not even as an exercise on paper," Katseli said.