Czech government agrees to raise savings guarantees to 50,000 euros
The Czech government approved a legislative proposal Tuesday that doubles savings guarantees to 50,000 euros (68,000 dollars) in a bid to prevent people from pulling out their money from Czech banks, officials said.
"This step should contribute to absolute confidence of savers in our system," Prime Minister Mirek Topolanek said, reported dpa.
The Czech Republic currently protects 90 per cent of retail bank deposits up to 25,000 euros.
The draft proposes covering the raised amount to full extent, said Finance Minister Miroslav Kalousek.
He said that 97 per cent of all retail bank deposits would be fully protected under the proposal, which requires approval by parliament.
Governments of three of the Czech Republic's four neighbours - Germany, Austria and Slovakia - said they plan to provide unlimited savings guarantees.
Topolanek last week slammed their decision, calling it "a shameless step" that boosts liquidity in those countries at the expense of others.