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Greece’s private sector bank deposits increased for 3. consecutive month

Private sector bank deposits increased for a third consecutive month in July 2017, according to the Bank of Greece (BoG), with the total reaching 121.25 billion euros during that month, nearly a billion euros above the figure for the previous month of May 2017.

“Nevertheless, deposits in the still bailout-dependent and recession-battered country continued to hover at their lowest point in 14 years,” notes economic news daily naftemporiki.

On the down side, the yearly rate of change in terms of financing remained at -1,8 percent.

The press release by the Bank of Greece reads:

In July 2017, the annual growth rate of total credit extended to the economy remained unchanged at -1.8% from the previous month and the monthly net flow was negative at €693 million, compared with a negative net flow of €1,319 million in the previous month.

The annual growth rate of total deposits remained unchanged at 4.2% from the previous month and the monthly net flow was positive at €946 million, compared with a positive net flow of €950 million in June 2017.

I. Credit to the domestic economy

Ι.1 Credit to the general government (1)

In July 2017, the monthly net flow of credit to general government was negative at €258 million, compared with a negative net flow of €1,116 million in the previous month. The annual growth rate of credit to general government stood at -5.2% from -4.6%, in the previous month.

Ι.2 Credit to the private sector

In July 2017, the annual growth rate of credit to the private sector stood at -1.2% from -1.3% in the previous month. The monthly net flow of credit to the private sector was negative at €435 million, compared with a negative net flow of €203 million in the previous month.

Ι.2.1 Credit to corporations

In July 2017, the monthly net flow of credit to corporations was negative at €266 million, compared with a negative net flow of €95 million in the previous month, while the annual growth rate of credit stood at -0.1% from -0.3% in the previous month. In particular, the annual growth rate of credit to non-financial corporations stood at -0.5% from -0.2% in the previous month and the monthly net flow of credit was negative at €532 million, against a negative net flow of €148 million in the previous month. The annual growth rate of credit to insurance corporations and other financial intermediaries stood at 4.7% in July 2017 from -1.1% in the previous month and the monthly net flow of credit was positive at €266 million, compared with a positive net flow of €53 million in the previous month.

Ι.2.2 Credit to sole proprietors and unincorporated partnerships

In July 2017, the monthly net flow of credit to sole proprietors and unincorporated partnerships was negative at €7 million, compared with a positive net flow of €24 million in the previous month, while its annual growth rate stood at -0.2% from -0.4% in the previous month.

Ι.2.3 Credit to individuals and private non-profit institutions

In July 2017, the monthly net flow of credit to individuals and private non-profit institutions was negative at €163 million, compared with a negative net flow of €132 million in the previous month, while its annual growth rate stood at -2.4% from -2.5% in the previous month.

II. Deposits (2) of the total economy with credit institutions (3)

ΙΙ.1 Deposits of the general government

In July 2017, deposits of the general government increased by €19 million, compared with a decrease of €140 million in the previous month, while the annual growth rate stood at 2.8% from 15.0% in the previous month.

ΙΙ.2 Deposits of the private sector

In July 2017, deposits of the private sector increased by €927 million, compared with an increase of €1,090 million in the previous month, while the annual growth rate stood at 4.3% from 3.4% the previous month.

ΙΙ.2.1 Corporate deposits

In July 2017, corporate deposits increased by €512 million, compared with an increase of €320 million in the previous month and the annual growth rate stood at 15.3% from 10.7% in the previous month. In particular, deposits from non-financial corporations decreased by €93 million, against an increase of €947 million in the previous month, while deposits of insurance corporations and other financial intermediaries increased by €605 million in July 2017, compared with a decrease of €628 million in the previous month.

ΙΙ.2.2 Deposits of households and non-profit institutions

In July 2017, deposits of households and non-profit institutions increased by €415 million, compared with an increase of €771 million in the previous month, while the annual growth rate stood at 2.1% from 1.9% in the previous month. BoG

PS Prime Minister Alexis Tsipras had predicted that ‘trust will be restored’ once they second review of the Greek program concludes. Sadly, the BoG does snot explain how the bank deposits increased. Did people bring money from under the mattress to the banks? Have Greek employees earn more in the last 3 months? Do Greek companies sell more products and services? But …ops! it’s the statistics data, nobody needs to know why things happen. Things just happen… It’s probably magic.

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