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One Week After "Massive" Outflow, Greek Depositors Yank Another €600 Million From Local Banks
One week ago we reported that, according to Greek sources, Greece had suffered a "massive" deposit outflow to the tune of €700 million just last Friday, culminating a week of €3.4 billion in total outflows following the acrimonious failure by the Greek government to reach a deal with the Troika.
This was confirmed by Wednesday's news that Greek banks had received another weekly boost in their ELA allottment, the biggest since February, amounting to €2.3 billion and bringing the total to a record €83 billion.
... even as deposits continued to slide inexorably toward parity with the ECB's funding of Greek banks, at last official check at €130 billion although realistically much lower as of this moment.
Today, following yet another diplomatic snafu when yesterday the IMF announced unexpectedly that it had cut off negotiations on with an intransigent Greek delegation, which hardly restored depositor confidence in their local banks (hit by the double whammy of yet another S&P downgrade) Greek media newsit.gr reports that the relentless bank run once again surged and that as of 3:30 pm, another €600 million or more were withdrawn from local banks by locals "who fear that something might happen over the weekend."
This follows the withdrawal of €500 million on Wednesday, the day of the ill-fated Tsipras/Merkel/Juncker conference which aggravated the already precarious situation.
Tangentially, Keep Talking Greece reports that today's outflow may be due to a payday for the civil servants, "who receive their salaries in the middle and the end of the month. Salaries and pensions are traditionally paid Fridays when weekend interferes before the payday."
It is unclear if the €600 million outflow reported above is gross or net of this number, but unless the outflow is replenished by a comparable inflow, the nature of the withdrawal is irrelevant and means that since the Wednesday's ELA boost, Greek banks are already down another €1 billion in liquidity, which means that the traditional ELA buffer of €3 billion is correspondingly less and will require another replenishment momentarily by the ECB.
Speaking of which, also according to newsit.gr, next Wednesday is when a non-monetary policy board meeting of the ECB non-governing council will take place in Frankfurt where Draghi and company will discuss the issue of guarantees of Greek banks and perhaps the proposal for collateral "haircut."
According to some the ECB may also decide to no longer boost or even lower the amount of ELA which would in turn precipitate the collapse of the local banking sector, unless of course the ECB is willing to cover virtually every single euro deposited in Greek banks, which at this pace should take place in a few short weeks.
There is still hope: Greece has promised it will present Europe with its latest revised proposal on Saturday. However, with Eurozone already admitting it is contemplating a Grexit, and Greece responding "only over its red lined body", the Greek exit from the Eurozone may be just one "false flagged" accident away. Becase at the end of the day nobody wants to be blamed for an outcome which it appears both sides have agreeed upon.
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why is anyone still have anything in banks?
to not get to the other side?
Amazing is not fast withdrawal of Greek deposit, but is stupid (and lazy!) greek citizenry is still to keep money in bank!
Greece Boomers & Sooners? This one's lost, time to leave...
So, how many physical bank notes are there in the Greek banking system? I guarantee it's a lot less than enough to cover all of those deposits.
Greece uses the Euro. Same banknotes in many European countries.
I had the same thought. Euro or not, it is a question of how much physical cash vs. electronic funds.
What are they doing with the money ? Really; I'm wondering. Being polite, for a minute and calling Euros, "money". When I first heard that the European Union was going to have a currency called the Euro' I just started laughing. I couldn't believe it; it sounds like a urinary tract disease !! "Well, doctor I'm pretty good, but my Euro problem is starting up again". It's just hilarious.
The Euro has been stronger than the dollar since its advent in 2001. I get paid in US dollars and Euros so I know what I am talking about.
Because Greece has been on the cusp of default every weekend for five years. Nobody believes them. Oh, and they're all retarded too.
I think they are only half retarded. I mean look at the retirement deals they received over a generation. That isn't a sign of retarded. Thats a sign of lazy like a fox.
Greek is lazy, German is work so hard to support Greek. Someday, German is own Greek.
The Lender is Master to the Debtor; I think it says that somewherre in the Bible. No, I'm not a bible scholar, but it shows that this has been understood for a long time.
We recognize Satoshi as our supreme leader...
Every weekend this summer could be "it". Good excuse to read ZH with a cold one!!
Why wait for the weekend to enjoy a cold one?
Every day is a good day for ZH and a cold one!
Welcome to my life.
Amen to that
Reminds me of how I lost my virginity. I always fantasized about banging the hot cheerleader and then bragging about it to my budddies. Turns out I cranked some ho at a party while totally pissed drunk. That is how this Greek thing wiill end. The Greeks will wake up one day with sticky sheets and a headache and say....not doing that again.
You forgot the rest of the story; and then They'll do That Again. Always, that's the rest of the story for human beings.
I'd withdraw some of my money but I blew it all on TP.
When I get to heaven and they ask if heard anything about Greece. I'll tell them that I heard a few times that Greece might default.
Question,
Is the EU, USA, dumb enough to try to start WWIII? After watching how WWI and WWII started, find it hard to comprehend with the internet that people would fall for it again. Have we not learned are lessons yet?
"If you don't have it. You don't got it."
Liberty is a demand. Tyranny is submission..
The problem with the banksters'' fiat, is that you never really "have" it.
Define have? LOL!
Just have the Greek ATM's print and dispense the currency on demand. No problems! Every Greek gets their deposit back.
If an ATM can print a receipt, why not a piece of currency? Diebold - are you listening? Gonna need these machines all over the world soon.
Greece...grease...greece - what kind of name is that for a proud (but improverished) country?
I have come to the conclusion Greece is just the Financial World's leading soap opera.
Trailing a distant second in the viewership: When will the Fed raise interest rates? (Answer - never)
I think the Greeks are cashing out, because they know Euros will still have some cash value for a while, until the Greeks do that thing... Introduce the gold-drachma alongside the Euro. And boom!
Seems that the Greek public is inadvertantly putting pressure on the debt-holders. Isn't that the European Union Central Bank most immediately? And the counterparties for all that Greek debt CDS?
What???? Some idiots STILL (!!!) have money in da bang????
The EU and IMF are baffled by Tsipras as his gov't not taking bribes as the old guard did. Euros just don't buy politicians like they did . Also what happened to that 24 hour aultimatum some 26 hours ago.
Everyone who matters has agreed that the only way to stop Greece from escaping the EU and joining the party of freedom led by Putin's Russia is to make a bloody mess of Greece, and render it ungovernable except by the armed forces of NATO.
Every bank must fail. Every businessman more respectable than an African street peddler must be ruined. Every school and hospital must close its doors. Pension payments must stop, and the elderly must be encouraged to die. Law enforcement must cease for want of funds to pay policemen, and Greece's army of illegal immigrants must be allowed to loot and rape to their ballsacks' content. The better, of course, to ensure that Uncle Sugar will be greeted as a liberator.
Welcome back to Baghdad.
The UN will have to intervene and set up a special relief agency...like for the poor peaceful arabs of gaza-ramallahstan. It doesn't matter to Greece whether they exit or not, their economy is defunct and unable to serve their citizen's needs.