The bulk of deposits withdrawn from Greek bank accounts in the last two-and-a-half months due to political and financial uncertainty has stayed inside the country, stashed away in safe deposit boxes, mattresses and investment products.
Banks estimate that only a small part, about 20 percent, of the funds that came out of depositors’ accounts has been sent to banks abroad. As banks sources have stressed, if the government agrees terms with its creditors next week, confirming the European course of the country and putting an end to uncertainty, most of the 20 billion euros that has left local banks since end-November could return, and quickly.
Bankers believe that some 50 percent of the deposit outflows, i.e. some 10 billion euros, has stayed in the country in the form of disposable cash and can be found in safe deposit boxes, mattresses etc, as many households have chosen to keep their cash at hand due to the ongoing uncertainty. Another 30 percent, or 6 billion euros, has been deposited in investment products.
The 20 percent of deposit outflows that has gone abroad, amounting to some 4 billion euros, mostly concerns corporate funds and some of it has gone to subsidiaries of Greek banks in other countries, such as in Cyprus, Great Britain, Luxembourg, Malta, etc.