by Szu Ping Chan, The Telegraph:
Mario Draghi’s comments were designed to ease market fears that all bank deposits would be at risk in future if international lenders were called-in to rescue struggling eurozone countries.
He was also scathing about Cyprus’s initial plan to impose a levy on insured as well as uninsured bank depositors. The country had initially sought to raid the savings of all depositors, even though they had a bank deposit guarantee. This was later changed to only include depositors with savings of more than €100,000 (£85,000).
The move triggered a wave of concern in financial markets, fearing that investors elsewhere would start a bank run. “That was not smart, to say the least, and it was quickly corrected the day after in a Eurogroup teleconference,” said Mr Draghi. “You have a pecking order, and ideally uninsured depositors should be the very last category to be touched.”
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