ECONOMY

Deposits keep rising in pandemic

deposits-keep-rising-in-pandemic

Bank deposits recorded a new 2.5-billion-euro increase last month, as the economic support measures are helping to strengthen the liquidity of households and enterprises, according to data issued on Thursday by the Bank of Greece. The figures showed that deposits at the end of October amounted to €155.7 billion, up 1.7% in just one month from €153.1 billion at end-September.

Since the outbreak of the new crisis in late March, deposits at banks have grown by a remarkable €10.6 billion or 7.6%, despite the economic contraction. The growth in savings is attributed to a reduction in consumption by households and a drop in spending by corporations, as they all turn to expenditure containment to tackle the effects of the crisis. Household deposits have increased by €4.2 billion since March, to reach €121.8 billion, while corporate liquidity has expanded by €6.4 billion to €33.9 billion.

This is sustained by government measures such as the payment of retroactive dues to pensioners in October, the cheap loans to enterprises and the liquidity banks are supplying to companies through various programs.