Banks collect ECB funds without channeling them to the economy

Banks collect ECB funds without channeling them to the economy

Greece’s four systemic banks (National, Piraeus, Eurobank and Alpha) received over 3.2 billion euros from the European Central Bank last month, in the context of the favorable monetary measures Frankfurt is applying. However, those funds have not been channeled into the local economy, Bank of Greece data show.

In the first couple of months of 2021 the net amount of credit Greek enterprises received was just €104 million, while for the entire private sector the net credit flow was negative by €243 million, which means that banks have collected more debt servicing funds that the new loans disbursed.

After the increased funds that flowed into Greek banks’ coffers from the ECB in March, their total exposure to Frankfurt has come to €44.6 billion, from €41.4 billion at end-February; this capital that lenders borrow from the ECB come with a negative interest in the context of the ECB’s Targeted Long-Term Refinancing Operations (TLTROs).



Previous Next
Test Caption
Test Description goes like this
Cookies Preferences
Choose Type of Cookies You Accept Using

These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.

These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.

These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.