ECONOMY

Deposits outflow expected to halt after poll result

The banking sector is beginning the new week with moderate anxiety combined with a certain relief after Sunday?s election, with the main question being what the new government will look like.

Bank officials told Kathimerini that the easing of pressure and the confirmation of the country?s European course are expected to lead to a stabilization in the crucial deposits front.

In May estimates put the deposits outflow at about 6 to 7 billion euros in the aftermath of the inconclusive May 6 election.

Last week banks suffered a fresh wave of withdrawals due to uncertainty regarding the election outcome, which bank officials put at over 3 billion euros in the first 15 days of this month.

?Most of that capital is in houses, as bank clients needed to have some more cash than usual at home just in case. This money is likely to return very quickly to the credit system as soon as a viable government is formed,? the same bank officials argue.

Bank deposits in Greece have declined by more than 90 billion euros since the end of 2008.