Deposit flight from Greek Banks played a significant role in Greece's acceptance of a bailout extension, last week in the Eurogroup.

Deposit flight from Greek Banks played a significant role in Greece's acceptance of a bailout extension, last week in the Eurogroup.

According to European Central Bank data released today, around €12bn was withdrawn from Greek banks in January, taking deposits down to €155.4bn. This trend is believe to have continued, even accelerated in February, making this the biggest flight of capital since 2012, when doubts about Greece's continuing participation in the Eurozone led to massive withdrawals. When February data is officialy calculated, total deposits in Greek banks may very well prove to be now below the 2012 low.

Last Friday, when the Greek Government finally accepted a Eurogroup deal it was widely speculated that it was facing the imposition of capital controls after the extended weekend that followed.

http://www.neurope.eu/article/ecb-12-billion-euros-flee-greek-banks-january