Market not seeing ECB cash

The real economy has seen just a small part of the cash injection granted by the European Central Bank to the Greek credit sector for tackling the impact of the pandemic.

Although they have drawn as much as 40 billion euros from the Eurosystem, banks have channeled just a fragment of that into loans to the market. Instead, they are putting most of those resources on state bonds, in a bid to safeguard fragile profits.

Another part of their cash flow - in the absence of sustainable enterprises that could absorb it - is parked at the ECB in the form of cash disposables. Over the first nine months of the year, Greek lenders have put a total of almost €35 billion on the purchase of state securities and into the reduction of borrowing from the interbank market, as well as in deposits in the central bank.

Therefore, the bulk of liquidity is circulating around the ECB,...