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

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

The monthly net flow of total private sector financing was negative by EUR 1.143 billion compared to a positive net flow of EUR 3.313 billion in June.

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

The BoE statement

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

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

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

I. Financing the domestic economy

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

I.1 General government financing

The monthly net monthly financing flow to the general government in July 2024 was negative by EUR 100 million, compared to a negative net flow of EUR 845 million in the previous month. The annual rate of change in general government financing was -0.4%, down from 0.0% in the previous month.

I.2 Private sector financing

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 EUR 1,143 million, compared to a positive net flow of EUR 3,313 million in the previous month.

I.2.1 Financing of enterprises

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

I.2.2 Financing of the self-employed, farmers and sole proprietorships

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

I.2.3 Funding of private individuals and private non-profit institutions

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

II. Deposits of the domestic economy with domestic credit institutions

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

II.1 Deposit from general government

Deposits from the general government decreased by EUR 261 million in July 2024, compared with an increase of EUR 137 million in the previous month, and the annual rate of change was -24.6%, down from -21.8% in the previous month.

II.2 Deposits from the private sector

Deposits from the private sector decreased by EUR 607 million in July 2024, compared to an increase of EUR 3,826 million in the previous month, while the annual rate of change decreased to 2.7% from 2.9% in the previous month.

II.2.1 Deposits from corporations

In July 2024, business deposits decreased by EUR 780 million, compared to an increase of EUR 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, compared to a decrease of 232 million in the previous month.

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

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

Notes:

General government includes the central government, local government, and social security organizations.

Deposits also include repurchase agreements.

Domestic credit institutions do not include the Bank of Greece.