Greek Bank Deposits Dropped to 2003 Levels in July

bank-of-Greece

Greek banks lost 39.4 billion euros in deposits between January and July.

The Bank of Greece (BoG) announced on Thursday that Greek households withdrew 1.43 billion euros from Greek banks in the month of July, thus lowering the total Greek bank deposits to 120.83 billion euros. This was the lowest amount of deposits in Greek banks since 2003.

Greece has been under a capital controls regime since the end of June. The country’s hampered banking sector will soon get a 10-billion-euro injection from the 86-billion-euro bailout deal that Greece and its international creditors agreed to. An additional 15 billion euros are destined for Greek banks following a stress test in the fall.

Greek Economy Minister Giorgos Stathakis claimed on Wednesday that these banking restrictions will be lifted “very soon.”

BoG also released data on the financing of the Greek private sector by Greek banks during the month of July.

“In July 2015, the annual growth rate of total funding to the domestic private sector stood at -1.5%, from -1.7% in the previous month. The monthly net flow of total funding to the domestic private sector was negative by 607 million euros, against a positive net flow of 430 million euros in the previous month,” the announcement said.