The recovery of deposits to the pre-holiday level is evidenced by the data on the progress of deposits in January, based on which there was a decrease of 4.5 billion euros. According to data released yesterday by the Central Bank of Greece, total private sector deposits, which includes deposits from both households and businesses, fell to 184.1 billion euros from a record level of 188.7 billion euros (an increase of 5 billion euros). compared to the previous year). last November) which reached December 2022. This increase, as confirmed by the data of the Bank of England, was seasonal and was explained by:

1. In the seasonality of deposits, which traditionally jump up every year at the end of the year due to the payment of a Christmas gift in the private sector.

2. In a significant increase in bank lending to enterprises in December, which led to an increase in the liquidity they had at the end of 2022.

3. In the practice of replenishing cash reserves by a large number of enterprises in connection with the closing of the financial year.

They fell to 184.1 billion euros from a record level of 188.7 billion euros in December 2022.

4. In OPEKEP payments, most of which are paid in December and spent later.

In particular, household deposits decreased by the end of January by 1.4 billion euros compared to December 2022 and amounted to 139.8 billion euros. The reduction is due to high consumption driven by the needs of the holidays, with the result that the Christmas gift, which exploded the level of household deposits in December by 3.2 billion euros compared to November 2022, was used up.

As for companies (excluding insurance companies), their deposits in banks decreased by the end of January by 3.4 billion euros, and liquidity was limited to 40.3 billion euros from 43.7 billion euros in December 2022. As mentioned above, the high level of EUR 43.7 billion recorded in December last year relates to new loans approved as disbursements by banks at the end of the previous year in an attempt to increase corporate loan balances due to the close of the year. This liquidity was absorbed at the beginning of the year to cover operating expenses, make investments or pay off old debts, which was reflected in the January figures.

The correlation of deposits and loans, especially in relation to business, is also reflected in the MB data on credit expansion for January, which, on an annualized basis, i.e. compared to January 2022, are positive (+11.3), but the monthly net flow is negative by 1.7 billion euros. Recall that the negative net inflow of financing shows that loan repayments were larger than new payments, and the negative sign in January is associated with high payments at the end of last year, amounting to 2.9 billion euros. In terms of credit expansion to households, it remained negative (-2.4%), as did net inflow of financing, which was negative by 203 million euros, as new payments fall short of maturity.