Banknote circulation has fallen to June 2012 levels following a massive cash withdrawal from bank deposits, a Bank of Greece (BoG) report said on Tuesday.
The report noted that the biggest part of deposit outflow was in cash, while the Greek central bank said that the value of banknotes in circulation reached 45.20 billion euros in May, falling to June 2012 levels (43.3 billion euros) – a period when the European Central Bank (ECB) was sending banknotes to Greece to help the country overcome its liquidity problems. The report showed that Greek banks’ dependence on the ECB and the Emergency Liquidity Assistance (ELA) grew to 116.4 billion euros in May, from 112.8 billion a month earlier, although these figures have dramatically changed due to the extreme conditions prevailing in the market over the last few days. Funding through ELA reached 77.6 billion euros in May and borrowing from the ECB was 38.8 billion in the same period. However, borrowing through ELA has reached 89 billion euros since the beginning of June.