- December 9, 2011 at 7:09 pm #56226
A deposit of €100k account with a Spanish Bank is protected under the deposit protection guarantee.
Does this guarantee covers other currencies as well e.g. Sterling, Swiss frank, Dollors etc ?. Comman sense tell me that it should be upto the equivelent amount of €100k.
I feel this should be encouraged as this brings capital into the Country and improves liquidity. But as we all know Spain is different.
- December 10, 2011 at 8:01 pm #107095
It’s a good question, and I agree that common sense suggests it should be up to €100k in any currency. However, there’s not much common sense around these days, and anyway, I’m not going to make an effort to find out the answer for the following reason: I don’t think the deposit guarantee will help anyone in this crisis, regardless of currency. It is there to give us the illusion that our savings are safe. If banks start to fold there isn’t anywhere like enough money to go around. People will not get back what has been guaranteed.
- December 11, 2011 at 2:19 pm #107103
Thanks Mark. So really its like a Bank guarantee that Spanish developers provide or not provide. Of course it is not them who are giving this guarantee. It is the Bank of course by Law.
- December 11, 2011 at 6:09 pm #107108
The Icelandic crash proved that the definition of guarantee can be changed from what is commonly understood by, say, an English speaker. There it became to mean”what we can afford” and “you should have realised we don’t have the ability to pay this guarantee’ to “You should be aware that investments go bad, so tough”.
Converting foreign currency into devalued local currency happened, on mass, in Argentina.
- December 11, 2011 at 6:25 pm #107111
Intresting comment about about Argentina. Can you please expand on it. I take it that foreign currency bought tons of local currency ???.
- December 11, 2011 at 6:44 pm #107113
Have a read of this site, Argentina is about to devalue again. Interesting insight to a post devaluation society, with a twist of right wing craziness.
- December 11, 2011 at 7:53 pm #107117
Argentina is a joke country, though not quite as hilarious as Venezuela. Brazil is better, but still risky. You buy property in any of those places at your peril.
Chile, on the other hand, is better run and less corrupt than several European countries I can think of.
I know someone who had a large hunting estate in Argentina stolen from him. Ownership (in the deeds) was transferred to a local big-cheese without his knowledge. Brazen beyond belief.
- December 11, 2011 at 8:03 pm #107118
Uruguay is about to be reclassified as a First World country, outside of there I’d avoid S. America.
Ferfal would agree with you about Argentina, he’s in the process of emigrating to Northern Ireland. He’s lucky to have a EU passport (Spanish) via his father who escaped the civil war. I can’t emphasis enough how shit Argentina really is.
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