Greece: Deposits up by EUR 1.766 bn in June

Greece: Deposits up by EUR 1.766 bn in June

The inflow of new deposits from businesses and households in June exceeded EUR 1.766 billion, bringing their total stock to EUR 112.5 billion at the end of the first half of the year.

The increase in deposits, coupled with the de-banking of the European Central Bank’s lending, improve the liquidity conditions of the credit system and make it easier to fully remove restrictions on capital movements. According to all indications, the complete lifting of the capital controls is being scheduled for early autumn.

In more detail, according to the Bank of Greece, an increase of EUR 1,766 billion was recorded in the private sector deposits in June 2019, compared with an increase of EUR 562 million in the previous month, and the annual rate of change stood at 6.0% from 5.7% in the previous month.

Business deposits increased by EUR 689 million, compared with an increase of EUR 217 million in the previous month and the annual rate of change was 5.3% from 3.6% in the previous month. In particular, deposits of non-financial corporations grew by EUR 869 million, compared with an increase of EUR 150 million in the previous month, while deposits from insurance corporations and other financial institutions declined by EUR 180 million, compared with an increase of EUR 67 million in the previous month.

Finally, household deposits and private non-profit institutions increased by EUR 1.077 billion in June 2019, compared with an increase of EUR 345 million in the previous month, while the annual rate of change was 6.1% from 6,2% in the previous month.

Small increase in lending

On the lending side, the annual rate of change in total domestic economy financing stood at -0.3%, down from 0.1% in the previous month, while the monthly net flow was negative by EUR 171 million against a negative net flow of EUR 597 million in the previous month.

The annual rate of change in total private sector financing was -0.2%, unchanged from the previous month. The monthly net flow of total funding to the private sector was positive at EUR 936 million, compared with a negative net flow of EUR 324 million in the previous month./ibna