(Greece) – According to the Greek Central Bank, deposits in Greece have increased for the second month in the row, which is considered a positive sign for the economy. Bank deposits also increased in May, which is around the time that the country’s third bailout since 2010 was approved. In June, the figures that were released by the Central Bank showed that deposits rose by 1.04 billion euros, or a total of 122.74 billion euros month-on-month. The figure in may was 121.7 billion euros month-on-month, which also showed an increase.
From December to July of 2015, the country saw a 42 billion euro deposit outflow. Worries about money and economic stability caused people to take money out. The capital controls that were enacted in late June of 2015 helped with that but there was still an imbalance between withdrawals and deposits. Generally, Greece has known that it needs to improve its banking system and the easing of capital controls is part of that process.
Last summer, around the time of the second bailout, the Greek government imposed banking restrictions to prevent people from taking too much money out. of their accounts. Gradually, the Greek government has been relaxing these restrictions. The country has seen an increase in deposits since the third bailout was made official. This bailout has made it possible for the country to stay in the Eurozone. Greece just received the first payment from the third bailout a few weeks ago.
The government needs this money to pay off loan balances from the International Monetary Fund and the European Central Bank. Although the austerity that has come with these bailouts has been controversial, the international creditors have made them a requirement. The international creditors have said that the Greek government needs to increase its revenue and decrease spending, and austerity is a part of that.