Greek central bank says deposit outflow situation under control

Greece’s central bank said on Sunday that the situation with deposit outflows from the country was under control, as it tried to reassure markets ahead of a Jan. 25 snap election.

Greek media have reported that there have been significant deposit outflows in recent days due to political uncertainty two weeks ahead of early elections.

Opinion polls show that the radical leftist Syriza party maintains its lead over the ruling conservatives.

“After reports about deposit outflows from the country’s banks, the Bank of Greece notes that the situation is under full control,” the central bank said in a statement.

“The Bank of Greece along with the European Central Bank are monitoring closely the developments and intervene whenever this is necessary,” it said.

The central bank said the ECB has been offering credit facilitation to countries that were on a fiscal adjustment programme since 2010, a policy which is not affected by political developments.

The ECB has helped out Greek banks by exempting them from requirements on the collateral it accepts for access to funding.