Bank Officials Say Depositors Still Wary Due to Capital Controls

21 August 2016
89 Views

Greeks are still not convinced that they can trust banks with their earnings, according to a recent report from the Bank of Greece (BoG).

Not only are Greeks still stashing away their money under mattresses or in home safety boxes, the first half of 2016 has seen an actual decrease in deposits, meaning Greeks are holding on to more money than usual.

Banking sources have reported to Kathimerini newspaper that bank officials are not expecting Greeks to rediscover their confidence in the banking system anytime soon, even with the recent relaxation of capital controls.

In fact, even with an increase in the stability of the economy following Greece’s sign-off on the newest bailout deal with creditors, reducing fears of a Grexit, banks saw deposits at their lowest levels in the past 13 years, showing Greeks are still skeptical of the long-term stability of the banking situation in Greece.

According to data released by BoG, for the end of June, private sector deposits for households and private businesses came to 122.74 billion after significant increases in deposits from May to June. However, this increase is largely due to the tourism season and payment arrears the government put back into the market totaling some 1.1 billion euros.

The government has an additional 15 actions to complete before another 1.7 billion euros will be available to pay arrears to help further infuse the economy.

You may be interested

Breaking news: 4.9 magnitude earthquake strikes near Santorini
GREECE
shares96 views
GREECE
shares96 views

Breaking news: 4.9 magnitude earthquake strikes near Santorini

makis - Aug 16, 2017

A 4.9 magnitude earthquake has hit the area between the islands of Milos, Amorgos and Santorini. The tremor occurred at…

Greek Ministry of Foreign Affairs announcement on the participation of FYROM’s Consul General in Toronto in an irredentist event
POLITICS
shares83 views
POLITICS
shares83 views

Greek Ministry of Foreign Affairs announcement on the participation of FYROM’s Consul General in Toronto in an irredentist event

makis - Aug 16, 2017

The Greek Ministry of Foreign Affairs issued the following Press Release. We condemn the participation of fYROM’s Consul General in…

Pavlopoulos: We are grateful to those that are giving a huge battle to protect the people & the environment
POLITICS
shares110 views
POLITICS
shares110 views

Pavlopoulos: We are grateful to those that are giving a huge battle to protect the people & the environment

makis - Aug 16, 2017

“The Greeks honour today the great feast of the Dormition of Virgin Mary, that always protects the Greek people’s struggles…

Leave a Comment

Your email address will not be published.