Wednesday April 23, 2014 Search
Weather | Athens
23o C
15o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Bank deposits seen shrinking in January

By Yiannis Papadoyiannis

Private sector deposits at Greek banks posted a significant decline of more than 2 billion euros in January compared with December 2013, according to estimates by bank officials. The officials note that the decline is due to the increased tax obligations of both households and enterprises.

Bank deposits had grown by 2 billion euros in December, but that rise is considered coincidental given that the state paid debts amounting to 1.2 billion euros in the last month of 2013, which contributed to the rise in deposits.

However at the start of this year citizens and enterprises again resorted to their savings to meet their particularly high tax obligations.

After last months decline, deposits have returned to 160 billion euros, closer to the low point seen in June 2012 when back-to-back general elections led the deposit balance to 150.58 billion euros the lowest since 2005.

Bank sources say that although cash conditions have improved, they remain a long way from satisfactory.

Despite the 10-billion-euro increase in deposits since the summer of 2012, private sector savings remain some 75 billion euros below the pre-crisis level at the end of 2009, when the deposits of households and enterprises had amounted to 237.5 billion euros.

The same sources estimate that a major part of the flight of funds from the banking system in 2011 and 2012 was due to fears of a possible Greek exit from the eurozone. That sum of deposits has not yet returned to local banks, with last years haircut at Cypriot banks accentuating fears regarding the risk to deposits in excess of 100,000 euros.

Depositors are discouraged from returning their money to their bank accounts in spite of assurances from the government, the Bank of Greece and European Union officials that their money will not be subject to a haircut. They note that after their recapitalization, local lenders have strengthened their capital bases considerably and point to the stock of 10 billion euros held at the Hellenic Financial Stability Fund (HFSF) in case one or more banks require additional assistance.

Boosting deposits is a crucial issue as it also is a key condition for the restoration of credit lines to households and corporations.

Banks estimate that deposits will return to the credit system to a substantial degree once the fears of political instability or a bank account haircut go away for good and the economy returns to growth.

ekathimerini.com , Thursday February 13, 2014 (22:48)  
Corfu property market puts up resistance to pressures
Major tourism promotion at travel fair in Latin America
Eurostat to confirm the size of 2013 primary surplus
Hundreds of thousands of social dividend applications
FBI seeks to identify victims of suspected US child molester who worked abroad, including Greece
U.S. authorities have asked the public to help identify as many as 90 possible victims of a suspected child predator who worked at American and other international schools in at least nine c...
Tunnel boring for Thessaloniki metro to resume after two years of inactivity
The two tunnel boring machines that are being used to construct the Thessaloniki metro are to start work again after almost two years, it was revealed on Tuesday. The borers have dug 73 perc...
Inside News
BASKETBALL
Reds and Greens stay alive in Euroleague
Easter and home advantage worked wonders for Panathinaikos and Olympiakos who stayed alive in the Euroleague play-offs beating CSKA and Real Madrid respectively on Monday in Greece. Shak...
BASKETBALL
Greens lose badly as CSKA Moscow
Panathinaikos has a mountain to climb in order to reach the Final Four of the Euroleague after losing at CSKA Moscow on Friday for a second time in two days, only this time it was comprehens...
Inside Sports
COMMENTARY
Realitys other side
...
EDITORIAL
Enough barbarity
The events that took place on Santorini on Holy Saturday, when seven people were injured, including an American tourist who sustained life-threatening injuries, after a firecracker was throw...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. FBI seeks to identify victims of suspected US child molester who worked abroad, including Greece
2. Corfu property market puts up resistance to pressures
3. Major tourism promotion at travel fair in Latin America
4. Eurostat to confirm the size of 2013 primary surplus
5. Hundreds of thousands of social dividend applications
6. National bond issue already covered
more news
Today
This Week
1. FBI seeks to identify victims of suspected US child molester who worked abroad, including Greece
2. Three more arrests made on Santorini over Easter injuries [Update]
3. PM Samaras sees Greek bond yields falling more
4. Athens airport worker dies after being hit by shuttle bus
5. Vodafone sued for 1.4 billion euros by former Greek distributor
6. Warning issued over Evros River overflow
Today
This Week
1. Greece's market return mirrors return of tourists
2. Greece startup leaders say they cant break jobless cycle alone
3. Ground-breaking Good Friday mass signals thaw in Cyprus
4. Mayoral candidates clash over Athens mosque plans
5. Government looks to kick on
6. Greece offers to help find Turkish F-16 lost in 1996
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.