Czech Finance Ministry plans deposit guarantee hike

The Czech Finance Ministry has announced a plan to raise guarantees for bank deposits to 50,000 euros, in line with a decision by EU finance ministers. European Union finance ministers agreed at a meeting on Tuesday to raise minimum bank deposit guarantees in Europe to 50,000 euros from 20,000 euros currently. Finance Minister Miroslav Kalousek said the measures he would propose to the cabinet on Wednesday would be permanent, unlike the EU deal which is valid for a year. The move is expected to cover the vast majority of small savers but according to Wednesday’s edition of Lidové noviny many Czechs with higher bank deposits are considering transferring their accounts abroad, particularly to banks in neighbouring Austria which guarantees the full amount of deposits. The finance minister rejected calls from the opposition for blanket guarantees on all private deposits, saying the circumstances did not merit such action.

Author: Rosie Johnston