Private deposits and loans to the private sector fell in July after surging the previous month, according to data released by the Bank of Greece.

Total private deposits fell by 607 million euros compared to an increase of 3.826 billion euros in June. Business deposits decreased by 780 million euros against an increase of 3.251 billion. euros in June and household deposits increased by 173 million euros after increasing by 775 million euros, respectively.

The monthly net flow of total financing to the private sector was negative by 1.143 billion. euros against a positive net flow of 3,313 billion. euros in June.

The monthly net flow of financing to businesses was negative by 1.066 billion euros, against a positive net flow of 3.158 billion. euros in June, while the annual rate of change increased to 10.6% from 10.3%.

The announcement of the Bank of Greece

– The annual rate of change in the total financing of the domestic economy remained unchanged at 3.7% in July 2024, compared to the previous month.

– The annual rate of change of total deposits decreased to 1.4% from 1.8% in the previous month.

– Private sector deposits decreased by 607 million euros, in July 2024, against an increase of 3,826 million euros in the previous month.

I. Financing the domestic economy

The monthly net flow of total funding was negative by €1,242 million in July 2024, compared to a positive net flow of €2,468 million in the previous month.

I.1 Funding of the general government

The monthly net flow of funding to general government in July 2024 was negative €100 million, compared to a negative net flow of €845 million the previous month. The annual rate of change in general government funding stood at -0.4% from 0.0% in the previous month.

I.2 Financing of the private sector

In July 2024, the annual rate of change in total private sector financing increased to 6.4% from 6.1% in the previous month. The monthly net flow of total financing to the private sector was negative by €1,143 million, compared to a positive net flow of €3,313 million in the previous month.

I.2.1 Business financing

The monthly net flow of funding to businesses in July 2024 was a negative €1,066 million, compared to a positive net flow of €3,158 million the previous month, while the annual rate of change rose to 10.6% from 10.3 % in the previous month. In particular, the annual rate of change in financing of non-financial corporations (NFCs) increased to 9.7% from 9.4% in the previous month. Their monthly net funding flow was negative by €1,084 million, compared to a positive net flow of €2,633 million in the previous month. The annual rate of change in the financing of insurance companies and other financial institutions increased to 17.6% from 17.0% in the previous month. Their monthly net funding flow was positive by €18 million, compared to a positive net flow of €525 million the previous month.

I.2.2 Financing of freelancers, farmers and individual businesses

In July 2024, the monthly net flow of funding to freelancers, farmers and sole proprietorships was negative by €67 million, compared to a positive net flow of €67 million in the previous month. The annual rate of change in their funding increased to 0.2% from -0.5% the previous month.

I.2.3 Financing of private and private non-profit institutions

The monthly net flow of funding to individuals and private non-profit institutions was negative by €9 million in July 2024, compared to a positive net flow of €88 million in the previous month. The annual rate of change in their funding was -0.8% from -0.9% in the previous month.

II. Deposits of the domestic economy in domestic credit institutions

The monthly net flow of total deposits was negative by €868 million in July 2024, compared to a positive net flow of €3,963 million in June 2024.

II.1 Deposits from the general government

General government deposits decreased by 261 million euros in July 2024, compared to an increase of 137 million euros the previous month, and the annual rate of change was -24.6% from -21.8% the previous month.

II.2 Deposits from the private sector

Private sector deposits fell by €607m in July 2024, compared to an increase of €3,826m the previous month, while the annual rate of change eased to 2.7% from 2.9% the previous month.

II.2.1 Deposits from businesses

Business deposits decreased by €780 million in July 2024, compared to an increase of €3,051 million in the previous month, and the annual rate of change decreased to 4.0% from 5.0% in the previous month. In particular, MXE deposits decreased by 781 million euros, compared to an increase of 3,283 million euros in the previous month. Deposits of insurance companies and other financial institutions increased by 1 million euros, against a decrease of 232 million euros in the previous month.

II.2.2 Deposits from households and private non-profit institutions

Deposits of households and private non-profit institutions increased by 173 million euros in July 2024, compared to an increase of 775 million euros in the previous month, while the annual rate of change remained unchanged at 2.2% compared to the previous month.

Notes:

General government includes central government, Local Government Organizations and Social Security Organizations.

Deposits also include repos.

Domestic credit institutions do not include the Bank of Greece.