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Over four billion euro in deposits "vanished" from the banks within only 3 days

22 January 2015 / 11:01:52  GRReporter
1227 reads

Greek depositors are withdrawing in a panic their money from the banks in anticipation of the critical elections on Sunday, 25 January. All polls are indicating a lead of the coalition of the radical left SYRIZA, which may be sufficient for the forming of an independent government. As the newspaper Proto Thema reports, on Monday, 19 January, 1 billion euro in deposits vanished from Greek banks. On Tuesday, 20 January, depositors withdrew 1.4 billion euro and on Wednesday, 21 January, bank deposits decreased by 1.8 billion euro.
     This is why the Bank of Greece has requested the European Central Bank to provide liquidity for four Greek financial institutions through the Emergency Liquidity Assistance. Late last night, Frankfurt approved the measure and it will be in force over the next 15 days.
     The newspaper Kathimerini however reports that even if the banks are provided with liquidity, Greece will need additional financing of 1.5-2 billion euro only until the end of March. If the budget implementation is not in line with the objectives set in it, this additional funding will increase. The memorandum of financial stability of Greece has been extended until the end of February 2015 and it is believed that the financial requirements of the country are covered until then. The issuance of government bonds will take place in March.
     Greece has not received financial aid of 7.2 billion euro from the International Monetary Fund, which is frozen until the completion of the inspection by creditors after the formation of the new Greek government.

Tags: Greek banksOutflow of depositsPanicSYRIZA governmentLiquidityEuropean Central Bank
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