Calamos Supports Greece
GreekReporter.comGreek NewsEconomyGreeks are Hiding Over €50 Billion in Cash

Greeks are Hiding Over €50 Billion in Cash

78DDA8D95F23622AFC05DA7D98FCE56CThe imposition of capital controls showed that Greeks have over 50 billion euros stashed away under mattresses, in drawers, buried in the yard or in bank safety deposit boxes.
In July, with capital controls in full effect for the whole month, banknotes in circulation decreased by 400 million euros compared to June. In June, the amount of hidden cash peaked at 50.5 billion euros after more than six months of continuous deposit outflow.
In July, households were forced to spend part of that hidden cash due to the capital controls.
According to the Bank of Greece (BoG), “net liabilities related to the allocation of euro banknotes within the Eurosystem” went from 3.9 billion euros in November 2014 to 22 billion in July 2015. This was due to demand for fresh cash that was either covered by existing reserves or injections from the Eurosystem, according to a report from Greek newspaper “Kathimerini.”
In addition, there is an average 28.1 billion euros in circulation in the Greek market at any given time, a figure that has remained almost stable in recent months, with fluctuations of around 1 billion euros, said the report.
According to BoG, the value of physical cash circulating in Greece is the highest in the Eurozone. As a percentage of gross domestic product, it is at 27.8% while other member-states average 6-8%.
The “Kathimerini” report said that obligations to the Eurosystem fell by 2.3 billion euros in July, totaling 128.2 billion. The decrease is a result of the European Central Bank’s decision not to extend Emergency Liquidity Assistance (ELA) that month as it suspended support pending a deal with Greece’s creditors and the country was forced to impose capital controls to contain further deposit outflow.

See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!



Related Posts