The governor of the Bank of Greece, Yannis Stournaras, has said that Greek households still keep their money away from the banking system because they are afraid of their savings. He claimed that 12 to 14 billion euros are under mattresses and that businesses have another 10 billion euros abroad. He urged the money owners to bring it back to the country’s banks.
“We are talking about an amount between 12 and 14 billion euros,” Stournaras has been quoted by tanea, as saying adding “businesses hold abroad 10 billion euros.”
“The threat of Grexit does not exist anymore, so there is no reason not to bring their capital to Greece,” he stressed.
There is information that close to €1 billion is the amount of capital held abroad by only one of the companies that hold their capital outside the Greek banking system.
Stournaras appeals to these companies “to show patriotism” and to bring their money their money to Greece. At the same time, he sends a loud message to households the prefer mattresses and flower pots to keep their savings than in the banks.
The Central Bank governor underlines that the return of deposits deposits is a key factor in lifting of capital controls.
He admits that there is a inflow of deposits, but not so strong that the full lifting of capital controls would proceed. Something that means Greece will exit the bailout program in about a month but will still have capital restrictions.
Stournaras added that the firm government commitment to reforms, the avoidance of unilateral actions and, above all, the prevention of a policy of incentives that would signal to the markets that the economy is loosely relaxing and returning to bad old habits are the keys so that businesses and households gain trust again to the banking system.
Does Stournaras and the government seriously think that Greeks will bring back their money to the banks when the Big Brother has access to every tiny detail about taxpayers’ assets?
PS I am pretty sure, the estimated amount away from the banks was 60 billion euros in the first 2-3 years of the crisis. What happened to the billions? Greece’s households spent it to make ends meet in times of high unemployment, ridiculous wages and over taxation.