Bank deposit fears subsiding

The Greek credit system is slowly reverting to normal after the significant turbulence witnessed over the course of last week, as bank officials are now suggesting that the deposit outflow seen in the period right after the May 6 election has subsided.

They said that the bleeding of bank accounts had almost stopped on Friday and yesterday, while local lenders are still eagerly anticipating the transfer of 18 billion euros ahead of the recapitalization process.

Hellenic Financial Stability Facility (HFSF) sources said yesterday that the temporary recapitalization, which will strengthen the capital base of the country?s four main commercial banks, is in the final straight and should be completed by the end of the week. Last week HFSF head Panayiotis Thomopoulos said the 18 billion euros would be paid by tomorrow.

These funds are to be transferred to National, Alpha, Eurobank EFG and Piraeus as a temporary payment ahead of the recapitalization that the government to emerge from the June 17 elections will plan and implement.