Pace of Withdrawals Accelerating at Greek Banks

June 13, 2012 3:38 PM EDT
Reports out Wednesday suggest the pace of the bank runs in Greece are increasing. Major Greek banks have seen withdrawals of up to €800 million in just the past few days and the pace is picking up as the June 17th elections draw near.

According an anonymous banker, funds are flowing out "as cash withdrawals, wire transfers and investments into money market funds, German Bunds, U.S. Treasuries and EIB bonds."

Hoping to quell panic, another banker said "We have stable outflows on a daily basis, which are manageable and covered by the ELA facility."

Greek banks had deposits of €165.9 billion as of April, but that number is estimated to be much lower following mass withdrawals in May and so far in June. Greek depositors are fearful the government will leave the EU, shut down banks, and convert euros to drachma.

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