'New money' growth points to confidence in banking sector

"New money" in banks - deposits to which the capital controls do not apply - are close to 30 billion euros, according to banking sources. In just one year the amount has doubled, as in early 2017 it stood at some 15 billion euros.

The term "new money" concerns all kinds of new deposits: funds returning from abroad, deposits that had been invested in investment products abroad for safety reasons, and cash being redeposited in banks after being stashed away in people's homes.

The main source of new money is the redepositing of cash by corporations and individuals. Every euro deposited in banks by supermarkets and other enterprises, gas stations, OPAP gaming agents, freelance professionals and so on is considered new money and is not subject to the capital control restrictions, so it can be freely transferred abroad, for example.

If somebody withdraws 1,000 euros (to...

Continue reading on: