Europe Economy

Greek Bank Withdrawals Slowing Down: Source


A senior executive at a Greek bank said the pace of withdrawals has slowed further on Wednesday, after a large spike on Monday. Late Tuesday, data inadvertently revealed by the country's president showed 700 million euros ($889.7 billion) worth of withdrawals on Monday alone.

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The political disarray in Greece since an inconclusive on May 6th has led to increased concerns that Greece may leave the euro zone. Those worries were exacerbated when weekend negotiations to form a coalition government failed. 

If Greece leaves the euro zone, Greeks will likely find that euros deposited in the nations’ banks will be converted to a new currency of less value.

However, the banking source added that while the spike on Monday was sharp, it was not as high as the time period immediately following former Prime Minister George Papandreou’s ill-fated announcement to hold a referendum on whether or not Greece should stay in the euro. That referendum never happened.

The Monday data was revealed in a transcript from a meeting held at the Greek president’s office, where he told the leaders of the nation’s parties that more than 700 million euros had left the banking system on Monday of this week alone.

A banking source expressed frustration about the revelation, fearing it would lead to even further withdrawals, but so far today, those fears have not been borne out.