Deposits continue to grow in local banks

Confidence in the Greek economy and the local credit system is in constant improvement, as about 1 billion euros of deposits returned to local bank accounts in September, according to Bank of Greece data released on Thursday.

The stabilization of the political climate in the country after the formation of the coalition government last June and the increasing certainty that the country will stay in the eurozone and receive the next bailout tranche from its creditors helped the balance of Greek accounts climb from 153.4 billion euros in August to 154.3 billion last month.

This constitutes a monthly rise of 0.6 percent that may not be impressive but highlights a trend that started from late June and continues steadily.

BoG data also showed that credit expansion continued to be negative, as the funding of corporations and households contracted in September by 4.5 percent on an annual basis, while the debt of the private sector to banks declined to 231.8 billion euros.

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