De­posits rise, as do with­drawals

Kathimerini English - - Front Page - YIAN­NIS PAPADOYIANNIS

The flow of de­posits into Greek bank ac­counts con­tin­ued in Jan­uary, but it was matched by the amount of with­drawals for tax pay­ments, ac­cord­ing to bank of­fi­cials.

As a re­sult, the to­tal bal­ance of de­posits re­mained at 161.45 bil­lion eu­ros, the same level as De­cem­ber, credit sec­tor in­sid­ers told Kathimerini, fol­low­ing a net in­flow of some 5.5 bil­lion in the last month of 2012. Given the new cuts to salaries and pen­sions and the in­crease in tax obli­ga­tions, house­holds are left with lit­tle op­tion other than to use any de­posits left for emer­gen­cies.

De­spite the halt in the ris­ing course of to­tal de­posits last month, the to­tal pic­ture of the mar­ket in terms of cash flow has im­proved sig­nif­i­cantly in the last few months, thanks also to the re­cent re­open­ing of the Eurosys­tem’s credit lines for Greek banks.

In the seven months from June to De­cem­ber 2012, bank de­posits posted growth of 11 bil­lion eu­ros fol­low­ing many months of de­cline. This amount could dou­ble within 2013, as ac­cord­ing to Bank of Greece es­ti­mates there is still cash stashed away in safe de­posit boxes and mat­tresses be­lieved to to­tal some 20 bil­lion eu­ros. Should the fa­vor­able cli­mate con­tinue to im­prove, bank of­fi­cials ex­pect most of that to re­turn to the credit sys­tem.

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