Greek bank deposits rose in July for the first time since the country’s repeat elections raised concern it would exit the euro area.
Deposits by businesses and households rose 2.2 percent to 153.9 billion euros from 150.6 billion euros the previous month, according to data released by the Athens-based Bank of Greece on its website on Wednesday. Deposits had dropped 9 percent from April to June after inconclusive May 6 elections led to a second vote in June.
“Although the outlook is less fragile compared to that prevailing in May and June, upcoming political and macro developments will drive deposit evolution in the coming months,” Manos Giakoumis, research director for Euroxx Securities SA in Athens, said in an e-mailed note. Inflows continued this month, with deposits rising to 157 billion euros, according to data collected through August 24, the Athens-based Imerisia newspaper reported on Wednesday, citing unidentified banking sources. On Tuesday the European Central Bank had reported a 2 percent increase in deposits in Greek banks last month. [Bloomberg]