Greek Bank Deposits Fell in June on Euro Exit Concern
Greek bank deposits by businesses and households dropped 6.8 billion euros ($8.4 billion), or 4.3 percent, in June as two elections in six weeks raised concern the country may leave the euro area.
Deposits fell to 150.6 billion euros in June from 157.4 billion euros the previous month, according to a statement released by the Athens-based Bank of Greece on its website today. Deposits have dropped 14 percent in the first six months of the year from 174.2 billion euros in December.
Prime Minister Antonis Samaras formed a coalition government after the country’s second vote June 17, pledging to renegotiate the terms of a European Union and International Monetary Fund bailout while keeping the country in the euro.
“Although the outlook is less fragile compared to that prevailing in May and June upcoming political and macro developments will drive deposit evolution in the coming months,” Manos Giakoumis, a research director for Euroxx Securities SA in Athens, said in an e-mailed note.
Bank of Greece (TELL) Governor George Provopoulos said earlier this month there’s been a “satisfactory” inflow of bank deposits since the country’s rerun election. Bank deposits rose by 10 billion euros after the June election, Capital.gr reported today, citing unnamed bank officials. As much as 200 million euros is returning to the banking system every day, the Athens- based news website said.
European Central Bank data released today showed Greek deposits by non-financial companies and households fell 6.89 billion euros to 156.2 billion euros in June.
Greek bank lending to households and businesses declined 4.3 percent in June compared with a year earlier, according to a separate statement from the central bank today.