Monday , March 1 2021

Taxes and fears of seizing the "chew" deposits of the Greek economy



At the end of September, at the end of September, 142 billion households and business deposits dropped to EUR 141.6 billion at the end of October, while EUR 200 million was withdrawn in the first week of November from banks, limiting the amount of deposits to EUR 141.4 billion at the end of last week.

The increased tax liability, culminating in the third quarter of this year, "hurt" several Greek deposits with banks, whose level fell in the previous month and reversed the growth trend by August.

This is apparent from data released by "K", according to which bank deposits dropped by EUR 600 million at the beginning of November compared to the end of September. Specifically, EUR 142 billion in households and business deposits dropped to EUR 141.6 billion at the end of October, while EUR 200 million was withdrawn from banks in the first week of November, limiting the amount of deposits to EUR 141.4 billion at the end of last week . Keep in mind that deposits amounted to EUR 141.9 billion at the end of August, following the upward trend since the beginning of the year.

The observed outflows do not create a climate of concern for banks, as they are not related to any major reasons for destabilizing the economy. Instead, they are attributed to tax obligations that businesses and households have to pay in the last months of the year, but also more general fears of confiscation of accounts for those who are mostly obliged to the state and the removal of bank secrecy. It is worth noting that from September to December, the meal and the legal entities pay the profit tax in combination with the repayment of the ENP.

In any case, the observed deviations are sufficient to halt the decisive decline in ELA, which, according to the Bank of Greece data, fell slightly. According to the announcement of yesterday's Greek bank, the upper limit of ELA for Greek banks from Thursday, December 13, 2018 amounted to 4.9 billion euros and was reduced by only 100 million euros. Although, according to the announcements of the Bank, "the reduction of the EUR 100 million ceiling has been reflected in improving the liquidity of Greek banks, taking into account the flows from private sector deposits and access to financial markets". It is clear that the decrease does not significantly depreciate addiction o Eurosystem. It should be noted that until now, two Greek banks, Ethniki and Piraeus, have earmarked ELA, while Alpha Bank and Eurobank plan their deregulation by the end of the year. The unresolved trend in the growth of recorded deposits does not abolish bank plans, which attract the necessary liquidity from the interbank market. But it is clear that it is questioning the elasticity of households in order to see a reduction in disposable income, as well as the liquidity of business decline, despite the fact that the economy is growing.


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