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Economics Gazette

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November 20, 2019

Greeks show signs of returning confidence in the banks

GreeksPrivate sector deposits in Greek banks are rising for the second consecutive month, which is seen as a signal for the return of Greek confidence in the system and the prospects for the country as a whole. In May, deposits in Greek banks reached 119.42 billion EUR, the lowest level since May 2003. In June, however, businesses and households have imported 1 billion EUR in banks, according to data from the central bank in the country.

In May, there was also an increase of 638 million EUR.

At the same time, the decline in lending is deepening. In June lending declined by 1.3% compared to a 1% drop in May. Cash flow is negative and reaches 204 million EUR.

At the beginning of the year, the Greeks began massing their savings again because of the uncertainty surrounding the payout of the rescue program. Athens spent months negotiating with its creditors on the second review of the bailout program, which annoyed people. Only 4 billion EUR were withdrawn for the first three months of the banking system, even with the withdrawal restrictions.

Ultimately, however, the new crisis broke and the country received a cash tranche from its creditors. What’s more – just days ago, our southern neighbor tested the capital markets and managed to raise 3 billion EUR, selling five-year bonds.

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