Greece: Deposits and new loans have increased during the pandemic

Greece: Deposits and new loans have increased during the pandemic

The proliferation of the coronavirus pandemic and the stimulus packages announced by the government have brought changes both on the deposit and on the loans front.

Based on the data of the Bank of Greece, the increase of 1.717 billion euro of deposits in May continued, compared to an increase of 1.429 billion euro last month. On the other hand, for the second consecutive month, public deposits decreased, as in May there was an outflow of 1.9 billion euro compared to an outflow of 4,112 billion euro last month. In the private sector, corporate deposits increased by 1,523 billion euro in May 2020, compared with a decrease of 125 million euro last month, while household deposits increased by 194 million euro, compared to an increase of 1,554 billion euro last month.

In loans, according to data from the four systemic credit institutions, in May 2020, the total balance of loans subject to a temporary suspension of installments was 14.888 billion euro.

More specifically, these loans concern mortgages (€ 7,719 billion), loans to businesses (€ 4,358 billion), consumer loans (€ 1,531 billion), loans to self-employed, farmers and sole proprietorships (€ 1,277 million) and other loans to households (€3 million).

Credit extension

At the same time, according to data from the Bank of Greece for May, there is an increase in loans (credit expansion) by 4% after an increase of 2% in April, after many months of reduction of new loans.

Regarding private sector financing in May 2020, the annual rate of change in total financing increased to 0.7% from 0.3% the previous month. The monthly net flow of total financing to the private sector was positive by 356 million euro, compared to a negative net flow of 74 million euro last month. The monthly net flow of financing to the general government in May 2020 was positive by 2.681 billion euro, compared to a positive net flow of 2.585 billion euro last month. The annual rate of change in general government funding increased to 22.4% from 12% in the previous month./ibna