Greek bank deposits plummet by 7.6 billion euros. Mario Draghi keeps pressure on Greek banking sector

Post originally appeared on Ekathimerini.

February drained Greek bank accounts of another 7.6 billion euros, taking the three-month decline since the end of November to 23.8 billion euros. Consequently, the Greek bank deposit balance stood at 140.47 billion euros at the end of February, the lowest since March 2005, putting great pressure on local lenders’ liquidity.

The European Central Bank slightly eased the pressure on Greek banks on Wednesday, allowing them more access to emergency liquidity assistance (ELA) via the Bank of Greece. The mechanism’s ceiling has been lifted by another 2 billion euros to reach up to 71 billion euros, with a view to a new revision next Wednesday.

However, Frankfurt again made it clear to Greek banks that the additional liquidity is not to be used for the purchase of Greek treasury bills, beyond the total amount of 15 billion euros that has already been met.

On Thursday ECB Governor Mario Draghi reiterated that Frankfurt will not purchase any Greek bonds in the context of its bond-buying program (QE). He stressed that this is not possible in the case of countries that are in eurozone and International Monetary Fund financing programs where there is an assessment pending.

Greek bonds in particular have two more obstacles, Draghi said: their low credit rating and the fact that the ECB cannot overstep the mark that would make it the country’s biggest creditor.

BoG data also showed on Thursday that credit contraction continued in February, at a 2.5 percent annual clip, although the net flow of corporate credit increased by 433 million euros from January 2015. Corporate loans declined by 2.3 percent year-on-year, mortgage loans contracted 3.1 percent and consumer loans dropped 2.8 percent.


0 0 vote
Article Rating
Help us grow. Support The Duran on Patreon!


The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.

What do you think?

Notify of
Newest Most Voted
Inline Feedbacks
View all comments

Is a referendum for Eurozone membership in the cards for Greek citizens?

Varoufakis is named one the top World Thinkers 2015 by Prospect Magazine