Greece: Deposits record 2 billion-dip

Greece: Deposits record 2 billion-dip

A 2.16 billion-euro outflow of deposits was recorded by the Bank of Greece for January 2020. In particular, BoG points out that private sector deposits in January decreased to 141.14 billion from 143.12 billion in January.

Specifically, as the BoG announced, an increase of 157 million euros was recorded in January 2020 by general government deposits, compared to an increase of 1,521 million last month; the annual rate of change fell to -9.1% from – 11.1% last month.

At the same time, in January 2020 private sector deposits declined by 2,163 billion euros, up the previous month’s 3.648 billion, while the annual rate of change fell to 6.3% from 6.7% from last month

Corporate deposits

Corporate deposits declined by 1.196 billion euro in January 2020 against a rise of 1.801 million last month, with the annual rate of change down to 9.4% from 9.8% last month. In particular, deposits of non-financial corporations decreased by 1,586 million, compared to an increase of 2,322 million euros last month, while deposits of insurance companies and other financial institutions increased by 390 million, compared to a decrease of 521 million euros last month.

Households low as well

Deposits by households and private non-profit institutions declined by 967 million euro in January 2020 against the 1,847 billion in the previous month; annual turnover decreased to 5.6% from 6.0% last month.

Banks not granting loans

At the same time, according to BoG data, in January 2020 the annual rate of change in the total financing of the domestic economy stood at -1,6% from -1,3% in the previous month, which means that banks do not lend to households and businesses. As a result, the monthly net flow was negative by 1,974 million euros, against a positive net flow of 631 million last month.

Business financing

The monthly net flow of business financing in January 2020 was negative by 476 million compared to a positive net flow of 407 million euros last month, with the annual rate of change at 1.7% from 1.8% last month. In particular, the annual rate of change in non-financial corporations’ financing stood at 1.6% from 1.7% last month and their monthly net financing flow was negative by 349 ​​million, against a positive net flow of 430 million euros last month. /ibna