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    Austria announces unlimited guarantee for bank savings

    Hürriyet Haber
    08.10.2008 - 13:59 | Son Güncelleme:

    Austria's government said Wednesday it will guarantee all personal bank savings, after a string state rescues of European lenders amid deepening world financial turmoil.

    "Austria will introduce an unlimited guarantee on bank deposits," Chancellor Alfred Gusenbauer announced after a cabinet meeting, following a similar move by Germany over the weekend.

     

    The cabinet's proposal, which must still be endorsed by parliament, comes after European finance ministers agreed Tuesday to protect people's savings by more than doubling deposit guarantees to at least 50,000 euros, from 20,000 euros, in the event of a banks collapse.

     

    Austrian Finance Minister Wilhelm Molterer added Wednesday that the bank deposit guarantee would be made retro-active.

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