Harriett Baldwin
Main Page: Harriett Baldwin (Conservative - West Worcestershire)Department Debates - View all Harriett Baldwin's debates with the HM Treasury
(11 years, 2 months ago)
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Greg Clark
The Bank of England keeps the arrangements under constant review. I think it is fair to reflect that Cyprus is an infinitesimal part of the European banking system and an even smaller part of the world banking system. Although this is an extremely worrying time for citizens of Cyprus and our constituents who have investments or connections in Cyprus, in the wider context Cyprus does not have the systemic importance of other countries.
Harriett Baldwin (West Worcestershire) (Con)
Whatever the Cypriot Parliament decides this week, this has been a torpedo across the European banking system. What advice would the Minister give to pensioners who live in Spain and Portugal about whether they should maintain large deposits in eurozone banks?
Greg Clark
I agree that this is a warning and that it is necessary to have more robust financial arrangements in place to prevent this sort of crisis from happening in other countries. However, I reinforce the advice of the ECB that this problem is unique to Cyprus, which is particularly exposed and is in a state of particular indebtedness.