ECB Gives Greek Banks Barely Enough Cash To Cover One Day's Bank Run

Tyler Durden's picture

Yesterday evening, after what had been a dramatic surge in the Greek bank run which has resulted in over €3 billion in cash withdrawn through Thursday night, the Greek central bank requested an emergency cash dispensation from the ECB under the country's Emergency Liquidity Assistance program, just one day after the ECB granted the latest €1.1 billion expansion in the ELA. Rarlier today, in an unscheduled session, the ECB did as requested, however it granted Greece far less than the amount it sought, and according to MarketNews reports, the ECB gave Greece just €1.8 billion in addition funds.

This means that Greek deposits have declined by over €5 billion in the past 7 days alone, as indicated by the surge in the ELA from €80.7 billion on June 10 to €85.9 billion currently.

Worse, as Reuters reported moments ago, on Friday alone there was another €1.2 billion in deposit outflows which means that the entire ELA increase has already been used up, and Greece is again facing the abyss.

Finally, the one question on everyone's mind, can Greek deposits hit parity with total ELA as we hypothesized a week ago? The answer - no. As the following chart shows, Greece currently has about €95 billion in ELA eligibility and just around €120 BN in deposits left.

Which means that even the "well-meaning" ECB can handle at most 7-8 days more of deposit outflows before it shuts off the Greek ELA account and capital controls are finally imposed leading to the next, far more unpleasant phase of the Greek drama.

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NoDebt's picture

"They can squeeze a quarter so hard it'll spit out three dimes."

philipat's picture

IMHO it's deeper than that and is actually a defining moment for The EU, which is perhaps why it is taking so long. It's not only about Greece but also the whole periphery and so the future of the Eurozone and, tangentially the whole EU with both The UK and France looking to possiblye opt out entirely. On top of that there is now the Russian involvement with Greece, which introduces a new Geopolitical element involving not only Europe but also The US.

So these are very difficult issues for unelected Eurocrats who are used to doing not much of anything other than living well off European taxpayers' money. Which, again, is why there is no decisive movement and explains the multiple "24-Hour deadlines" and "Emergency Meetings".

But I'm sure Ghordius will have a different,  enlightening perspective...

walküre's picture

Ghordius is too busy trying to untie that Ghoridan knot in the debt negotiations!

Let's say they make a "deal" (LOL at that) and Greece receives another 11 billion and an extension until December or even March.

To quote the hillarious Hillary "What difference at this point does it make?"

By the way, Hillary is to blame for the Lybian refugee desaster in Europe. She better prepare her campaign for a good response to that. This desaster will be pinned on her and the pics of desolate stranded Lybian (and other African) refugees clamoring to boats and living in shanties across Europe.. those pics will be attached to her campaign.

Fucking Amerikanskis bombing Lybia, killing Ghadafi and what have you and then leaving a huge vacuum again. Why wouldn't all of Europe pivot to Russia?

BobRocket's picture

'blame for the Lybian refugee desaster in Europe'

 

That ain't no disaster, it is by design

 

google this

italy total fertility rate

 

The only politically acceptable method of mass immigration of historically high fertility rate individuals is if you dress it up as 'humanitarian'

 

walküre's picture

Did I miss something? Do they need slaves in Italy or did the Collisseum reopen for games?

Whoever is designing this is a complete fucktard. These peope are a drain on resources and a drain on the local economies. There's no upside with thousands of street vendors who sit and talk on their cell phones all day.

kliguy38's picture

they need DEMOGRAPHICS and yes that does mean a lot more "slaves"........

Kina's picture

Greece giving everybody time to get their money out.

Latitude25's picture

The Troika giving Greeks time to oust the current government

101 years and counting's picture

yessir.  4 extra months. and germany, the ecb and imf fell for it.  congrats to greece for pantsing the troika.

Ancona's picture

The trickle has stopped. Bring on riot dog.....

Haus-Targaryen's picture

They extended it.  Blah.  What a POS.  

On an aside -- I know Infowars reads the comments -- you guys need to address -- seriously spend a single show on housekeeping re; Rick Santelli.   

 

Latitude25's picture

Yay free money!!!!!

lawyer4anarchists's picture

Of course this kind of tyranny and control by the bankers is nothing new.  It is only that it is more visible in Greece for a variety of reasons.  But the same tyranny of ignoring the people and the laws and simply doing whatever they can get away with exists in this country as well. It is just that people don't recognize it as easily.  http://www.thetruthaboutthelaw.com/the-supreme-court-stole-your-right-to...

Creepy A. Cracker's picture

If one hates banks simply don't use them.  Maybe start you own lending institution not called a bank - may be call it a credit union - and do your own thing.  Lend money with no interest (like the Fed) and see how that works for you.

So many brain dead morons on ZH.

If you don't borrow you won't be in jeopardy of defaulting. 

DON"T SPEND MORE THAN YOU BRING IN AND DON'T BORROW.

Greece would not be in this situation if they didn't have a corrupt government that spend more than it took in.  It's a government (socialist) problem, not a bank problem.

 

firstdivision's picture

Actually Greece wouldn't be in this situation if they wasn't such a complicit Central Bank and IMF that pushes countries to borrow beyond their means, then this would be avoidable.

Creepy A. Cracker's picture

Greece could have said no - that they will not spend more than they take in.  But Greece decided to spend more than they take in.  Same with the U.S.  Now we're here.

SumTing Wong's picture

Hey Creepy Ass, have you seen ""Bank of Dave"? (He did charge interest, and gave it to the savers, too.))

Bearwagon's picture

Greece wouldn't be in that situation either, if no morons would have bet so much money on them, paying back their debt ....
But your advise remains good. Don't spend more than you bring in and don't borrow. Things are indeed that easy

pods's picture

Well, you are correct that it is a government problem, but that was after the government bailed out the banks who lent credit out that could not be repayed.

Now the ECB/ESF (Ghordius can fill in what I missed) and a host of other acronyms are on the hook instead of Douchebank.

pods

joak's picture

The problem are not the banks, it's the monetary system on which banks can thrive. Money is credit, so no credit, no money, it's as simple as that.

Bearwagon's picture

85.9 billion EUR? Up 1.8 since wednesday (when it was already up 1.1) ... this is getting quite unserious real fast

Augustus's picture

Headline states that ECB is Giving Greece More Money.

Why the heck should Greece be given anything more?  The leaders explain daily that they won't pay anything back.

Bay of Pigs's picture

It's a form of blackmail to get political change. You know, like Ben Bernanke, William Dudley, Hank Paulson, Tim Geithner and some others did a few years ago here in the USA.

But hey, lets just blame Putin and Russia, shall we?

Soul Glow's picture

They're giving them more fiat money/debt which is absolutely worthless.  Greece should rather get coal in their stocking.  At least coal can burn for awhile.  Fiat goes up in smoke.

Augustus's picture

If you believe that fiat money is absolutely worthless, please tell me in a private message where I can get yours.  Further if it is absolutely worthless, the worthless Greeks should not have trouble comming up with a stack of it to send to the creditors who want it.

 

Perhaps you should examine ow you arrive at your conclusions.  If you can he the Greeks acquire some of the worthless fiat at little cost, I'm certain there will be a nice fee for you.

DontFollowMyAdviceImaDummy's picture

if by "unpleasant" you meant AWESOME phase of the Greek drama, then yup!  get your popcorn ready everybody!

Soul Glow's picture

Seriously.  All previous phases have been hard to watch.  Greece riots, Tsiparas and YV caving to demands month after month, fat Troika members backslapping the fact that they loot billions from the common man.

This will be the fun part.

SERReal1's picture

I wonder if Greece will exist come Monday. Everything likes to shut its' doors over the weekend (can you say LehmanTM?)

Soul Glow's picture

They should have left the EU long ago, gone back to the drachma, and backed it with silver.  

SumTing Wong's picture

Greece will exist, but will it exist as part of the EU???

BandGap's picture

Got the feeling once things calm down they will snap. Has to happen at a time when it is least expected. Like new time highs in the US stock carnival or when the Greek situation looks "solvable".

This whole scenario is like that surrounding someone with stage 4 cancer. You just have to "believe".

astoriajoe's picture

I wish whoever is scripting this drama would hire an editor, because this is going on for far too long.

Soul Glow's picture

You expected the Troika not to try and bankrupt Greece?

astoriajoe's picture

I just thought they'd have done it quicker.

stormsailor's picture

when the next big bundle deadline passes we will read that they re-bundled.

Soul Glow's picture

And the central banks of the world will print their way to prosperity, because that has worked everytime in history!

HA!

:)

Soul Glow's picture

And silver flash crashes....

Because when the world is going to shit, who wants silver?

Well, I for one.

:)

Peter Pan's picture

Did you mean re-bundled or re-bungled?

Diplodicus Rex's picture

I'm not doubting for one minute that the Greek people are withdrawing their cash from the banks. It is an entirely rational act. The part which I'm having a hard time understanding is the size of the daily withdrawals. Greece has an overall population of approx 11m and, say, 30% are children therefore there are only 7.7m adults. According to some reports as much as E30b has been withdrawn thus far. That's an average of E3800 for every single adult in the country. There's also an assumption that it has not all yet been withdrawn so there's still some left in the banks. Does that not seem a bit high for a nationwide savings rate? What the hell are those people doing with that much money in the bank given the charade over the last 7 years? Does that withdrawal total include business deposits as well? There needs to be some clarity on this to make sense of it.

bluskyes's picture

are they just sucking out their paychecks, instead of leaving them in the bank?

Roevskalle's picture

I don't live in Greece but still have limitations on the amount I can withdraw each week. I don't have super big savings, but some amount saved up for deposit for eventual morgage, and other things.  It definitely totals E3800 and more than that. 

If I were to take everything out in the ATM, all savings and everything, I reckon it would take me around 3-4 months if I used the indoor ATM in the bank. Outdoor ATMs only allowing half the amount to be withdrawn, so would be double time. And that is given that the ATM has cash. It will take me 8 days to just withdraw my net salary, so the rest of 22 days/month I can withdraw savings.

I imagine the Bank may also change these limits in case it runs into problems, so it may take longer.

A faster way is to transfer to accounts to other banks and use multiple bank cards with several withdrawal limits in parallel.

But in general, most people will get stuck with some money in the accounts if there is a crisis.  Maybe one would need to re-think strategy for savings.  I think the figures are realistic however.  Some people of course have little money in their account as savings, but they withdraw their salaries. And the ones who sit on savings may have much more, and these are the ones still working on continuous withdrawal.

JustUsChickensHere's picture

All your money is in bank A.... so.... open a new account (empty) at bank B ..... close account at bank A and take funds in cash ...  duration of exercise.... about 1 day.

 

Continue life using bank B.... and stop lending any bank your legal tender.

Roevskalle's picture

Thanks for input. This will only work if they have the cash in the local branch. In Greece, I doubt it is that easy nowadays.

markam's picture

Somebody correct me if I am wrong.  Before all the money was withdrawn from the banks, the government could have nationalized the banks, given everyone drachmas and taken the euros.  They would have then had at least some hard money currency.  I assume that there is no way they can seize the ELA and convert this to an actual asset for the government.

This back run, while good for the greek citizens, is actually pushing the greek government into an ever smaller and smaller corner, with no real way to survive without the EU, correct?

Crtrvlt's picture

interesting point.  not sure the government could have done that as it is just 1's and 0's

 

compare that to the people of Greece actually having hard Euros.  

 

i still think, as others have alluded to, that this is the reason the Greek government has been stalling.  still 120 bln left but better than not pulling out anything I suppose.  They've given the Greek people enough time to do it without actually coming out and saying it verbatim 

Herdee's picture

Sounds to me that the ECB has done a pretty good job of sucking every last Euro out of Greece before they stupidly dump a NATO partner.

Herdee's picture

Sounds to me that the ECB has done a pretty good job of sucking every last Euro out of Greece before they stupidly dump a NATO partner.

golden raccoon's picture

Starting at todays withdrawal amount of 1.2 billion euros, and assuming a 50% increase daily, we have 9 business days remaining before there are zero deposits in Greek banks.

Watson's picture

Doesn't matter as ECB will plug gap with ELA.

Even by the standards of central banks, the ECB is a weak thing, a pale shadow of the Bundesbank of old, a Bundesbank that would have switched off its involvement with this nonsense long ago.

Watson

litemine's picture

THE cENTRAL BANKS........jUST ENOUGH SO THEY CAN hANG THE gREEKS.

tHE central Banks think that they should Own Every thing.

The Central Banks should be taught a leason, and not the way that they are.......Presently......as in "The cost of Doing business, But rules that apply to everyone.

The Revolt will be started by a spark, after ignition ......Everyone for themselves............

Are you prepared ?