Domestic bank deposits in Greece in increased by over 2 billion euros in December, compared to the previous month.
Bank of Greece data indicated this week that bank accounts had a balance of 163.25 billion euros at the end of December, up from 161.04 billion at end-November, or a 1.37 percent increase. The increase came to 1.1 percent on an annual basis, which reflects citizens’ reluctance to put any savings they have left back in the credit system.
The rise recorded in December is attributed to the Christmas bonus that most private enterprises distributed to their employees, even though public sector workers and all pensioners have now been deprived of it. Interest payments from the second half of the year also contributed toward the increase.
Bank officials say that the end of the savings outflow, which started in 2009 and resulted in a balance decline of 75 billion euros, may be a positive development, but the return of just 13 billion euros since the low point of June 2012 (at 150.6 billion euros) is far from satisfactory. JP Morgan stated in a recent study that deposits in Greece could grow by as much as 30 billion euros in the coming years.
Source: ekathimerini
