Greek depositors withdrew €700 million ($898 million) from the country’s banking institutions on Monday, fueling fears of a financial institution run amid the expanding political disarray.
With deposits falling, Greek financial institutions become even a lot more dependent on the European Central Financial institution to meet their funding requirements, exposing the central financial institution to possibly huge losses if Greece leaves the euro place.
Greek President Karolos Papoulias told the country’s political leaders that financial institution withdrawals plus buy orders received by Greek banks for German bunds totaled some €800 million on Monday, a transcript of his feedback stated. A central bank official confirmed the figures.
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It’s on. The financial doom and gloom that’s been predicted for months, and perhaps years, is starting to rear its head – beginning in Europe. Greek depositors withdrew 700 million ( 898 million) from local banks Monday, according to President Karolos Papoulias, as he warned that the situation facing Greece’s lenders was very difficult.
Greek depositors withdrew EUR700 million from local banks on Monday, the country’s president said, and warned that the situation facing Greece’s lenders was very difficult, reports WSJ. Citing a conversation he had with Greek Central Bank Governor George Provopoulos, Greek President Karolos Papoulias said “that the strength of banks is very weak…