FinMin Plans No Raise In Deposit Gurantee

 Meanwhile, the cabinet has announced it will “continue to consider taking further measures to protect both the system and individual bank account holders."

“The National Deposit Insurance Fund has HUF 60 bn earmarked to manage the problems," Veres was quoted as saying by local newswire Független Hírügynökség. The Finance Minister said the bank deposits of Hungarians are safe.

Ireland and Greece have announced earlier to notch up state guarantee on private savers' deposits. In Germany, the crisis of credit institute Hypo Real Estate was that convinced Chancellor Angela Merkel to drop her previous standpoint and the Finance Ministry announced on Sunday to offer unlimited guarantee for private deposits.

Others were quick to follow suit. On Monday, Austria decided to increase the level of state guarantee from EUR 20,000 and Denmark pushed the limit up to 300,000 crowns and from Tuesday Britain will also increase the amount of retail deposits it guarantees to GBP 50,000 (USD 88,600) from GBP 35,000. Sweden raised guarantees for bank deposits to 500,000 Swedish crowns (USD 69,630) from a previous 250,000 crowns. Norway pledged safeguards of up to two million Norwegian crowns (USD 325,000).

“Leaders of the European Union declare that they will take every necessary step in order to maintain the stability of the financial system, may it be liquidity support via the central banks, measures directed to individual banks or strengthening the measures to offer further safeguards to deposit holders," the Hungarian government said in a statement.

“Although no deposits of any bank account holder have been harmed, we will continue to consider taking additional measures to protect both the system and individual bank account holders."

Source: Portfolio Online Financial Journal