Wednesday, May 20, 2015

HOT Moody's Warns Of Greek "Deposit Freeze"

Moody's has just released a report titled "Outlook for Greece’s banking system is negative".

According to Moody's the report advises that  the outlook for the Greek banking system is negative, primarily reflecting the acute deterioration in Greek banks' funding and liquidity.. These pressures are unlikely to ease over the next 12-18 months and there is a high likelihood of an imposition of capital controls and a deposit freeze.

ZeroHedge notes:
Ordinarily, a statement like that by Moody's would be unthinkable, and would lead to an immedate, business-ending lawsuit by any other country, except for Greece which right now can't even afford the legal fees. And remember: the catalyst for everything getting better and Greece getting new cash is i) either a new government, ii) the current government conceding to Troika demands or iii) Grexit.
Any Greek, who hasn't already gotten his money out of the Greek banking system yet, is certainly going to consider with reports like this coming out.

Depositors in other countries should take note. When you most want to pull your money out of a bank, the government could stop you.


1 comment:

  1. Perhaps this will lead to a repeat of the Cypress bank account freeze, and announcement of the 10% confiscation of private deposits.(MARCH 2013).