ECONOMY

Greek bank deposits up by 2 billion euros in February, says BoG governor Provopoulos

Greek bank deposits rose by 2 billion euros in February, the country’s central bank governor said on Monday, signalling growing confidence in the country’s banking system on receding fears of a Greek euro exit.

Between 16 and 17 billion euros have returned to the banking system since June, Bank of Greece Governor George Provopoulos said in a meeting with President Karolos Papoulias.

“This is a satisfactory amount,» Provopoulos said.

Household and company deposits have started increasing after the June 17 election stabilised the country’s political situation and reduced uncertainty over its future as part of the euro zone. Official figures show that deposits stood at 161 billion euros at the end of January.

However, the inflows since June still represent only a fraction of the 90 billion euros that vanished from bank accounts during the country’s debt crisis.

Bank deposits had fallen to as low as 146.6 billion euros on June 19, two days after the election, from 237 billion euros at the end of 2009, according to EU and Bank of Greece figures.

[Reuters]