Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Deposits shrink on Greek fears

 Banks customers withdrew over 5 billion euros in just one month

By Yiannis Papadoyiannis

Deposits at Greek banks shrank in September on fears over the non-implementation of the July 21 eurozone summit agreement and increasing worries about the consequences of the fiscal crisis.

Bank of Greece data released on Tuesday showed that deposits in September declined by 5.46 billion euros from the month before.

At the end of September deposits amounted to 183.2 billion euros, against 188.66 billion at the end of August.

Tightening liquidity conditions have resulted in banks resorting to the emergency liquidity assistance (ELA) process, whereby the Bank of Greece secures cash flow to commercial lenders.

Central bank figures showed that the level of cash banks withdrew through the ELA process in September rose to over 20 billion euros, taking the total ELA disbursement to 26.56 billion at the end of September from 6.42 billion at the end of August. Sources suggest that all major commercial banks and a few smaller ones have boosted their liquidity levels with the scheme.

Bank officials told Kathimerini that the deposit outflow continued relentlessly in October, too, and intensified further in the last couple of weeks owing to the political instability created by Prime Minister George Papandreous referendum announcement and the open threats by European officials regarding the countrys prospects in the eurozone.

What is encouraging right now is that those pressures have eased with the announcement of the creation of a coalition government. The outflow continued on Monday and Tuesday, Kathimerini understands, but at a slower pace than last week. Banks are hoping that if the transitional government is formed without any further problems, the situation could revert to normal and deposit figures will stabilize.

Sources are even eyeing a rebound in deposits if the political situation improves and worries about the countrys place in the eurozone are put to rest. They note that in August, during the aftermath of the July 21 agreement, there was a 1.45-billion-euro increase in deposits on expectations created for a solution to Greeces fiscal problems.

ekathimerini.com , Tuesday November 8, 2011 (23:07)  
Bank concerns lead to fresh losses on bourse
Greece needs private debt overhaul, Piraeus Bank CEO says
Cheap energy pulls down eurozone producer prices in July
Greece sells 1.14 bln euros of 6-month T-bills, yield eases
Navys Prometheus brings doctors to remote Aegean islands
Naval support ship Prometheus will be touring the Dodecannese in the eastern Aegean from September 3-11 in order to provide residents of remote islands with primary healthcare, the Hellenic ...
Police seeks identity of woman injured in Thessaloniki hit-and-run
Police on Tuesday appealed to the public for help in identifying a woman who was hit by a motorcycle and left suffering serious injuries in Thessaloniki in August. The accident occurred on t...
Inside News
Grateful Saviola thanks Olympiakos, joins Verona
Former Argentina international Javier Saviola has thanked Greek champions Olympiakos for the "beautiful moments" during his season-long stint in Greece as he left the club to join Serie A ou...
SOCCER
Greece defender Papadopoulos fires parting shot at Michel
International defender Avraam Papadopoulos suddenly quit Olympiakos on Monday to join Turkish club Trabzonspor, and fired a parting shot at Olympiakos manager Michel putting the blame on the...
Inside Sports
COMMENTARY
Politicized archaeology
Let us suppose that archaeologists discover that the tomb uncovered in Amphipolis was not the resting place of Roxana or Nearchos, but of Alexander the Great. Let us assume, that is, that ar...
EDITORIAL
Moderating expectations
Politics is, to a great extent, all about managing expectations, and anyone who raises that bar too high or too fast is at serious risk of disappointing and losing the peoples favor. In a c...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Bank concerns lead to fresh losses on bourse
2. Navys Prometheus brings doctors to remote Aegean islands
3. Grateful Saviola thanks Olympiakos, joins Verona
4. Police seeks identity of woman injured in Thessaloniki hit-and-run
5. Armed robbers hold up post office in Thessaloniki
6. Greece needs private debt overhaul, Piraeus Bank CEO says
more news
Today
This Week
1. Politicized archaeology
2. Rain and storms with hail expected in many parts of Greece
3. Reforms to dominate Greek talks in Paris, debt relief talks later, says source
4. New committee formed to assess progress of deregulation in closed-shop professions
5. Moderating expectations
6. Trial over 2013 murder of pawn merchant starts in Athens
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.