3.5 bil euros return to Banks

According to data from the Bank of Greece, depositors returned to bank counters in July.

The amount of deposits held at banks by businesses, households and the government, was increased by approximately 3.5 billion euros, reaching 161.95 billion from 158.8 at the end of June.

The influx reached 3.3 billion euros, as the total reserve reached 153.9 billion from 150.6 billion in June.

But this increase does not solve the liquidity problem for Greek banks since at the beginning of 2010 the outflow of deposits exceeded 83 billion euros.

The banking system received the hardest blow in May-June 2012, when the uncertainty created by the two elections resulted in the withdrawal of approximately 18 billion euros in deposits from banks to safer destinations.

The reassuring statements by European officials on the country’s stay in the euro and the positive outcome of Samaras’ recent meetings with Merkel and Hollande boosted expectations for the success of the Greek adjustment program, impacting positively on the economic climate.

As a recent Alpha Bank study shows, whenever there is even a slight improvement in the economic climate of the country, bank deposits are increased.

Bankers estimate that the return of deposits will accelerate with the completion of the recapitalization process.