The cash reserves of general government entities are fully guaranteed, Greek Deputy Finance Minister Dimitris Mardas said in Parliament on Friday, stressing that mayors, regional authorities and universities have no reason to fear the transfer of their ‘idle’ disposable capital to the Bank of Greece (BoG). The Minister was speaking during a Parliament debate leading up to the ratification of a legislative act that orders all government organizations and agencies to transfer money not needed in the next 15 days to a special BoG account. Mardas explained that the money in this account would then be invested in repos, which do not lose their value, and the government can subsequently use if the need arises. He emphasised that the investment was not in various types of bills or bonds that could lose value. He further clarified that municipal rates raised directly from municipality citizens will not be transferred to the account, only the so-called “ready cash” not earmarked for other purposes. However, the same does not apply for other sources of municipality income, such as rent of municipal spaces and property. Replying to opposition party criticism, Mardas clarified that the special account will concurrently work like an ordinary account at a commercial bank, so that the money deposited “will be withdrawn as cash – not repos or bonds.” He also clarified that the government will undertake to pay any penalties for cash withdrawn early from time deposit accounts. (source: ana-mpa)
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