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Greeks worry about their savings – 9 billion euros withdrawn in 1Q 2011

More and more Greeks turn to local banks and withdraw their deposits out of fear of  a possible bankruptcy leads people to withdraw their deposits from banks. News portal news247  has a very good report on the issue, a report that coincides with the fears of my friends and relatives. The portal writes that in the first quarter of 2011, people picked up 9.4 billion of euro from the banks. Of course, here is to add that as the unemployment rises and wages/pensions decrease while the cost of living is getting more expensive, many people grab their savings to come along and meet their daily or extra needs

Anyway before I start writing my own post, I  sit back and just translate the news247-report.

The uncertainty that has overwhelmed the Greeks in one of the toughest financial periods in their country lead them to empty the banks. Citizens are overwhelmed by the fear about the fate of their deposits in the banks.

In anticipation of the new measures dictated by our lenders so they can grant the fifth loan-installment that will avert the possibility of default, the  households turn to their savings even to meet current needs.

From the beginning of the year, the ‘leakage’ of the banks is 3-4 billion euro per month in the average.

The portal continues with citizens quotations about their fears :

“If I had money, I would do it too. There is fear. Those with little money, they do nothing. Those with lots of money, have transferred them abroad” (Shop Owner)

“That’s an issue. there is fear about the credibility of  the banks, fear about the private deposits. From what people hear, they get scared about their savings” (Bank Employee)

“I haven’t withdrawn my money from the bank. I let it be. There is fear, but I don’t think so we will reach such a difficult point” (Employee)

On their side, the banking institutions try to keep their customers with attractive interest rates for  term deposits. However bankers react to politicians’ or economists’ statements creating uncertainty in the markets and among the people.

In total 9,4 billion euro were withdrawn from bank deposits accounts in the first quarter of 2011. In January deposits of households and businesses decreased at 3,7 billion euro, in February at 2,4 billion euro and March at 3,3 billion euro.

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