Document Type

Case Study

Case Series

Account Guarantee Programs

JEL Codes

G01, G28


Responding to general financial and economic volatility during the Global Financial Crisis (GFC), the Greek government in November 2008 sought to shore up public confidence in the banking system by raising the deposit-insurance limit from EUR 20,000 to EUR 100,000 (127,000 USD) per depositor for three years. The Hellenic Deposit Guarantee Fund (HDGF) was responsible for administering this adjustment, which was accompanied by a fivefold increase in the percentages used for calculating member institutions’ annual contributions. All credit institutions that were authorized to operate in Greece, including branches of foreign banks without their own coverage, were required to participate in the HDGF. The HDGF charged annual fees and insured savings accounts, demand deposits, current accounts, and time deposits. Although the increase in deposit-insurance coverage was initially set to expire on December 31, 2011, the Greek parliament opted to make the alteration a permanent feature of the banking system in October 2011. The HDGF did not issue any payouts between 2008 and year-end 2011.

Date Revised