Thursday, March 19, 2015

Greek bank deposit outflows spike over new tensions with EU

March 19, 2015

Greek banks saw deposit outflows of about 300 million euros on Wednesday, the highest in a single day since a February deal with the euro zone that staved off a banking collapse, two senior Greek bankers familiar with the matter said on Thursday.

Greek banks have seen deposits steadily flee the system since December when political tensions rose, sparking fears of a new financial crisis and the threat of a Greek euro zone exit.

The fears receded after a Feb. 20 deal extending Greece's bailout but have risen again in recent days as relations worsen between Athens and its euro zone creditors, which have frozen aid and left Greece on the verge of running out of cash.

Shares in Greek banks are down about 45 percent year to date.

"The uncertainty over the lack of progress in negotiations and the negative newsflow has affected sentiment," one banker told Reuters. "It's not a huge amount but the worry is whether this is the start of a trend that could get worse."


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