Bank Officials Say Depositors Still Wary Due to Capital Controls

21 August 2016
34 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

Tsakalotos to Spiegel: Schaeuble does not want Greece’s default
FINANCE
shares31 views
FINANCE
shares31 views

Tsakalotos to Spiegel: Schaeuble does not want Greece’s default

Panos - May 30, 2017

Finance Minister Euclid Tsakalotos in statements to German newspaper Spiegel on Tuesday expressed optimism that an agreement including the debt…

Tsakalotos: Looking for good, not perfect solution at coming Eurogroup
FINANCE
shares32 views
FINANCE
shares32 views

Tsakalotos: Looking for good, not perfect solution at coming Eurogroup

Panos - May 30, 2017

The Greek side on Monday appeared to lower its oft-repeated expectations of an agreement with creditors at the coming Eurogroup…

Sex, masks and cloaks! Police bust “Eyes Wide Shut” swingers club in Piraeus!
GREECE
shares25 views
GREECE
shares25 views

Sex, masks and cloaks! Police bust “Eyes Wide Shut” swingers club in Piraeus!

Panos - May 30, 2017

Greek police arrested 4 people during a raid on a night club in Piraeus after discovering the business was actually…

Leave a Comment

Your email address will not be published.