Deposit outflows revert to normal after election

Greek deposit withdrawals slowed on Monday after an election victory by the pro-bailout New Democracy party eased concern the nation will abandon the euro, three people familiar with situation said.

Deposits were little changed at one of the nation’s top four banks today, according to one banker, who asked not to be identified because the information is private.

Daily withdrawals in Greece peaked at more than 700 million euros last week, the bankers said.

An official for the Bank of Greece, the Athens-based central bank, declined to comment.

Greeks have withdrawn cash on concern a possible victory by anti-bailout parties would precipitate an exit from the euro, eroding the value of their savings.

New Democracy won enough seats to beat the anti-bailout SYRIZA party and potentially put together a majority coalition with third-placed PASOK.

New Democracy leader Antonis Samaras is making a second effort in six weeks to form a government that will keep aid flowing from the European Union and International Monetary Fund.

“Fear about what might have happened to capital under a SYRIZA government was of concern to depositors,” said Alexander Kyrtsis, a European bank specialist at UBS AG in London.

“Failure to form a coalition government, as well as concern about Greece’s cash position, could be other causes for alarm.”

[Bloomberg] - 

Εγγραφείτε στο newsletter μας

Ενημερωθείτε πρώτοι για τα τελευταία νέα, αποκλειστικά ρεπορταζ και ειδήσεις απο όλο τον κόσμο