Greek Deposit Inflows Slowly Picking Up Pace

The number of private sector deposits at Greek banks picked up pace in the summer months on back of improved tourism figures and following a bailout deal earlier this summer, according to banking professionals.

Private sector bank deposits grew in June for the second month in a row, according to central bank data. Business and household deposits rose to 120.42 billion euros from 119.42 billion in May.

Banking sector sources are saying the increased deposit inflows may help make up for lost ground in the first quarter of the year.

In December 2016, total deposits were at 132.1 billion euros with private deposits – households and businesses – at 121.4 billion euros.

In the meantime, bank account holders will be able as of September 1 to withdraw a total of 1,800 euros in cash per month following a decision to ease capital restrictions, in place since June 2015, while banking insiders are saying current restrictions on capital transfer abroad will be lifted in a year.

According to Greek media, banking inflows increased by 400 million euros in May and 1 billion euros in June.

Meanwhile, tourist spending also rose by 14.2 percent in June this year to 2.046 billion euros against 1.792 billion euros in June 2016, according to central bank figures, while revenue in the first half of 2017 reached 4,133,5 million euros against 3,840,9 million euros in the corresponding half of 2016. Average spending per trip in the first half of the year increased by 0.7 percent.