Wednesday November 26, 2014 Search
Weather | Athens
12o C
9o 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)  
Debtors snap up offer for easier settlements
Belgium gas firm said to be eyeing DESFA
OLP approval paves way for investment in Piraeus
Airport tender exceeds expectations
Hundreds of migrants on crippled ship off Crete
Ships from Greece rushed to help after a crippled freighter crammed with hundreds of migrants floundered for hours Tuesday in gale-force winds and high waves in the Mediterranean Sea, offici...
Policemen suspected of working at Piraeus bar where shooting took place
At least three serving policemen are thought to have been working at the bar in Mikrolimano, Piraeus, where a 31-year-old man opened fire with an AK-47 early on Saturday, resulting in 15 peo...
Inside News
SOCCER
Atletico eyes last 16 berth against Olympiakos
Greek champion Olympiakos faces a tough task if it is to prevent last season's beaten finalist Atletico Madrid sealing its passage into the last 16 of the Champions League at the Vicente Cal...
SOCCER
EPO ends soccer suspension, Super League resumes
Soccer action will resume this weekend after the Super League convened on Monday, elected a new president and alternate president and sent a letter to the soccer federation that assures it t...
Inside Sports
COMMENTARY
Beware of the fallen idols
Akis Tsochatzopoulos, a legendary figure of the Greek socialist movement, a man who came very close to taking over the party that governed the country for half of the time following the fall...
EDITORIAL
The hard truth
The coalition government must tell the truth to the Greek people, even if this entails admitting to mistakes made over the last few months. The countrys citizens are fully aware of how cruc...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Hundreds of migrants on crippled ship off Crete
2. Atletico eyes last 16 berth against Olympiakos
3. Debtors snap up offer for easier settlements
4. Belgium gas firm said to be eyeing DESFA
5. OLP approval paves way for investment in Piraeus
6. Airport tender exceeds expectations
more news
Today
This Week
1. Anastasiades to undergo heart surgery in the US on Dec 4
2. Cargo vessel carrying hundreds of migrants adrift southeast of Crete
3. Trade deficit widens by 8.7 percent during Jan-Sept period, says ELSTAT report
4. Two police officers among 9 arrested for drug trafficking
5. Fraport, Copelouzos offer highest bid for Greek regional airports
6. Stop Mediterranean becoming vast migrant cemetery, Pope tells Europe
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Give Greece a chance
4. Every age has its collaborators
5. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
6. Scientists expand excavation of ancient Amphipolis
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.