Friday April 25, 2014 Search
Weather | Athens
22o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Deposits grew by over 2 bln euros in December

 Rate of credit continued to contract
Representatives of the Hellenic Banking Union held a meeting with Development Minister Costis Hatzidakis to discuss ways to improve the flow of credit to enterprises.

By Yiannis Papadoyiannis

Domestic bank deposits showed a significant increase of over 2 billion euros in December compared to the previous month, although this is mostly attributed to seasonal factors rather than a return of deposits to banks.

Bank of Greece data illustrated on Wednesday that bank accounts had a balance of 163.25 billion euros at the end of December, up from 161.04 billion at end-November, or a 1.37 percent increase. The increase came to 1.1 percent on an annual basis, which reflects citizens reluctance to put any savings they have left back in the credit system.

The rise recorded in December is attributed to the Christmas bonus that most private enterprises distributed to their employees, even though public sector workers and all pensioners have now been deprived of it. Interest payments from the second half of the year also contributed toward the increase.

Bank officials say that the end of the savings outflow, which started in 2009 and resulted in a balance decline of 75 billion euros, may be a positive development, but the return of just 13 billion euros since the low point of June 2012 (at 150.6 billion euros) is far from satisfactory. They add that for liquidity conditions to improve significantly, for the benefit of the economy in general, the number of depositors must increase. The potential is there, though, as JP Morgan stated in a recent study that deposits in Greece could grow by as much as 30 billion euros in the coming years. For that to happen, the same banking sources note, the economy must revert to growth and the risk of political instability must be eliminated, along with fears of a tax on deposits.

Other BoG data showed that the credit contraction in December amounted to 3.9 percent, against an average contraction of 2.3 percent in the eurozone, while Development Minister Costis Hatzidakis held a meeting with representatives of the Hellenic Banking Union to discuss ways to improve the flow of credit to enterprises.

There was an exception to the credit contraction, as consumer loans issued last month rose by 63 million euros from November 2013, constituting the first monthly increase in more than three years.

ekathimerini.com , Wednesday Jan 29, 2014 (22:48)  
Ellaktor lands major Doha metro project
World seeks produce from Greece
Eurobank opens book for capital increase
Govt presents its growth model for the coming years
Veteran leftist Glezos, 91, says standing in Euro elections out of duty
Manonlis Glezos, a veteran SYRIZA MP and World War Two hero, said on Friday that he is standing in European Parliament elections next month out of duty despite his age of 91. "In the dismal ...
Work at new Athens cultural center gathering pace
It was revealed on Thursday that the outer shell of buildings at the Stavros Niarchos Foundation Cultural Center should be completed by July 28. The planting of trees and shrubs on the 17-he...
Inside News
SOCCER
4,000 officers to police Greek Cup final
Police says it will ban mass gatherings in central Athens amid heavy security measures planned for Saturday's Greek Cup final between Panathinaikos and PAOK at the Olympic Stadium. More than...
BASKETBALL
Never underestimate the Greek hoopsters
Olympiakos and Panathinaikos, who between them have won the last three European crowns, won again at home on Wednesday to take their Euroleague play-off series with Real Madrid and CSKA Mosc...
Inside Sports
COMMENTARY
At the mercy of fools
The death of a young man at an Easter lunch in a village near Rethymno on Crete and the very serious injury of an American guest at a Resurrection ceremony on Santorini must not be forgotten...
COMMENTARY
Putting the party above the country
The case of Sabiha Suleiman, the Roma activist whose candidacy for the European Parliament was announced by SYRIZA only to be withdrawn shortly afterward, is an illustration of the leftist o...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Veteran leftist Glezos, 91, says standing in Euro elections out of duty
2. Ellaktor lands major Doha metro project
3. World seeks produce from Greece
4. Eurobank opens book for capital increase
5. Govt presents its growth model for the coming years
6. Work at new Athens cultural center gathering pace
more news
Today
This Week
1. Ellaktor lands major Doha metro project
2. Veteran leftist Glezos, 91, says standing in Euro elections out of duty
3. Putting the party above the country
4. Three missing from cargo ship that went down off Crete
5. Central Athens cleanup a sign of Greece's turnaround
6. Strong card in debt talks
Today
This Week
1. Greece startup leaders say they cant break jobless cycle alone
2. Ground-breaking Good Friday mass signals thaw in Cyprus
3. Mayoral candidates clash over Athens mosque plans
4. Putting the party above the country
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.