Capital flight from banks, stocks, bonds

The flight of capital from the Greek market continued unabated in April, according to sector professionals, a trend that has not only affected deposits but has also seen the departure of foreign funds from Greek securities such as stocks and bonds.

From December, when the process that led to the change in government started, up until last month at least, the European payments system Target 2 showed a steady increase in Greek obligations abroad which signals the departure of capital, according to economists with knowledge of the matter.

On the bank deposit front, losses in this period are estimated at around 30 billion euros. Several foreign investors have also pulled out the Greek stock market, with net outflows since the start of the year being estimated at 500 million euros. In March alone, the departure of stock investors translated into the flight of 169.31 million euros, following the loss of 162.17 million euros in February.

Both the flight of funds and the devaluation of the Athens bourse and the Greek bond market, despite the growth signs of the last few days, have considerably harmed the funding capacity of the economy and enterprises. Furthermore, a freeze in privatizations and foreign direct investments has dramatically diminished the likelihood of an economic restart anytime soon.

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