The PM made the statement because of concerns raised by a merger of two Greek banks being called off due to the lack of new equity from private investors. [Regular readers know that the lack of new equity from private investors reflected the lack of transparency into the banks and the inability of the private investors to assess the risk and or solvency of the banks.]
Of course, the Greek PM has to say this.
The question is where is the proof that this is true.
If the Greek banks have been successfully recapitalized and all their losses recognized, then the banks disclosing their current global asset, liability and off-balance sheet exposure details should simply confirm this fact.
The absence of the banks providing ultra transparency so that the safety of uninsured deposits can be confirmed is a big red flag. Uninsured depositors should see this red flag waving and recognize that their deposits are at risk of a Cypriot style haircut.
Greek bank deposits are safe and the country's lenders are protected due to a recapitalization scheme which will be completed by the end of April, Prime Minister Antonis Samaras said on Saturday.
In an interview with Imerisia, Samaras ruled out a tax on deposits over 100,000 euros ($131,000) allaying fears of austerity-hit Greeks that their savings may be at risk after a raid on Cyprus depositors as part of the island's bailout.
"No, I'm categorical. There is no such issue. We have no reason to think about it," he said. "The Greek banking system is shielded due to the recapitalization."...
The banking sector was shaken this week by the unexpected suspension of National Bank's plans to integrate its newly acquired rival Eurobank after the lenders said they were unlikely to raise enough capital to stay private.
Samaras said the deal depends on the recapitalization. Under the terms of the plan, a minimum amount of new equity must be raised from the market for the banks to remain privately run.
"If the two banks raise the funds to recapitalize alone, then they will decide if they still want to merge. If they don't raise the demanded funds they will fall under the control of the Hellenic Financial Stability Fund which will decide if their merger is beneficial," he said.