Banking deposits guaranteed up to 100,000 euros

The individuals’ and small firms’ deposits with commercial banks will be guaranteed up to the equivalent of 100,000 euros, double the current level, starting next year, with the Government currently drafting an emergency ordinance for the introduction of the new threshold.

In parallel, bankers will no longer be allowed to be part of the management of the Banking Deposit Guarantee Fund (FGDSB, the institution guaranteeing depositors).
The stipulations are included in an emergency ordinance draft modifying GO 39/1996 on the setting up and operation of FGDSB.
The measures had been agreed upon during discussions with the IMF as far back as last year, being viewed as necessary for the strengthening of the banking system, by spurring the population’s confidence.
In 2009, though, National Bank analysts showed that lifting the guarantee threshold would have limited positive effects, considering the low value of most deposits.