Athens/Luxemburg - Greece's finance ministry on Tuesday said that it will guarantee all bank deposits up to 100,000 euros (135,000 dollars), assuring nervous savers across the southern Mediterranean country that their banks were safe.

"We intend to submit the relevant amendment to Parliament really soon and raise the limit from 20,000 to 100,000 euros," National Economy and Finance Minister Giorgos Alogoskoufis said following a meeting of EU finance ministers in Luxemburg.

Greece's finance minister also said that the government would commit itself to its pledge to do whatever it takes to safeguard the bank deposits of the Greek people.

"It is a political commitment which we clearly made last week," said Alogoskoufis.

Amid anxiety, the finance ministers of the 27-nation bloc agreed Tuesday in Luxemburg to hike the minimal levels of bank deposit guarantee in the European Union from 
20,000 euros to at least 50,000 euros, with a view of tackling the global financial crisis.

Aside from Greece, the Netherlands said it would also guarantee bank deposits up to 100,000 euros. Denmark, Finland and many of the eastern European newcomers argued that such and amount would weigh down their state budgets.

Last week the Greek government tabled a bill in Parliament which aimed to shield Greek borrowers from the impact of the global financial crisis by guranteeing bank deposits of 20,000 euros.

The move comes as governments across eastern Europe were forced to issue statements assuring depositors that their banks were safe.

Under the current bill's provisions, banks will not be allowed to seize from accounts money owed to them by customers, while lenders will not be allowed to repossess homes for debts of less than 20,000 euros.

The bill also states that banks will not be allowed to auction off properties at less than their official tax value, a government estimate based on a property's size and location. (dpa)