Wednesday, May 16, 2012

Massive withdrawals from Greek banks


Greece is in trouble, in big trouble
On last monday, people withdrew approxiamtely 700 millions Euros from the Greek banks,  therefore they are even more dependent on the help from the European central bank to avoid liquidity problems, it puts the central bank into a risky situation if Greece leaves the European Union as it could cause huge losses.

European officials have warned Greece that they would withhold rescue funds if Greek government refuses to cut spending and makes new reforms.

The Greek situation how easily financial institutions health that rely on customer confidence can deteriorate.

In other european countries that face financial problems, none of them is facing severe liquidity problems such as Greece, indeed in Portugal which is considered also as a country that may leave the euro-zone, they have no liquity problems and they even managed to increase the deposits last year by 11.6 billion euros.
Concerning the Irish banks,  the central bank of Ireland told in its last report that deposits have remained stable eventhough they still remain negative.

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