Greeks deposit more than 800 million in ‘mattress’ cash

Greeks deposit more than 800 million in ‘mattress’ cash 1

Banks_Fotor

More than 800 million euros in household cash is said to have been deposited by Greeks ever since the recent relaxing of capital controls, according to banking sources.

Since the imposition of capital controls many Greeks were reluctant to deposit their money in banks, with millions of euros held in household.

The return of more than 800 million euros to the banking sector was a boosting injection, which combined with a resolution of non-performing loans, would allow the funding of the real economy and enterprises. Repayment of state arrears to the private sector is also expected to boost liquidity in the market.

This newfound and much needed confidence in the Greek banking system is attributed to a decision taken by Finance Minister Euclid Tsakalotos who eliminated a 420-euro per week limit on withdrawals for new deposits, since they were new money and not subject to any limitation.  The same decision allowed depositors to withdraw up to 840 euros in cash every two weeks, or make an early (partial or whole) repayment of a loan.

GCT Team

This article was researched and written by a GCT team member.