Greek outflows topped €11bn in the 3 weeks to the elections
Bloomberg report that outflows from Greek banks hit $12.5bn and today the Greek central bank revealed that deposits fell€4bn to €160.3 in December
The outflows don’t seem to be drying up and worries are growing over liquidity issues at Greek banks. Credit default swaps are pointing to a 75% chance of a default and had caused bond yields to rise further into 11%, though we’re currently trading at 10.6%.
When Greece first hit the skids through the crisis this sort of news hit the euro hard but it’s not even blinking. Is that ignorance that they won’t leave the eurozone, nor will it lead to contagion, or acceptance that if they do go it won’t be a bigger deal as it would have been several years ago?
If Europe has done enough to protect themselves from countries going bust then they might have those processes put to the test. Will Europe’s ringfence powers be made of steel or paper?
