Political standoff sees Greek bank deposits hit 10-year low

Greek bank deposits plunged to their lowest level in 10 years in February as a political standoff between the government and the country’s creditors raised the prospect of a possible euro exit.

The deposits of households and businesses fell 5% in February to €140.5bn, their lowest level since March 2005, according to Bank of Greece data released yesterday. Greeks have pulled about €23.8bn from banking system in the past three months, 15% of the total deposit base.

Greek lenders are dependant on Emergency Liquidity Assistance (ELA) controlled by the European Central Bank to stay afloat as depositors flee. The country’s creditors have given prime minister Alexis Tsipras, elected in January on an anti-austerity platform, a Monday deadline to present enough details of an economic plan to convince them to release more funds.