Deposits trickling back into Greek accounts

Greek banks have seen only a trickle of deposit inflows six months after the country clinched a third bailout to stay in the eurozone, and will remain hooked on central bank borrowing for months as confidence has yet to be fully restored.

Although banks were recapitalized in November deposits have inched up by only 2.5 billion euros in the last six months, far slower than the growth of money in circulation – suggesting savers do have cash but are choosing to keep it at home.

“The return of lost deposits may prove challenging in the short term, forcing banks to continue to rely on ELA [emergency liquidity assistance],” said analyst Yiannis Sinapis at Athens-based Euroxx Securities.

[Reuters]