The recent easing of capital controls with immediate effect is likely to help the Greek banks to attract part of deposits which were withdrawn last year and are still in the country but outside the banking system according to Moody’s credit rating agency.

The raise in deposit balances will contribute to the further macro stabilisation and restored confidence in the banking system.

Moody’s refers to the estimate of Finance Deputy Minister, George Chouliarakis, of an increase in deposit balances up to EUR4bn, observing that the partial lifting of capital controls, the recapitalisation of banks and the return to profitability will contribute to restoring the confidence of depositors.

Yannis Stournaras, Governor of the Bank of Greece, estimates the cash balances held within the country but outside the domestic banking system up to EUR15ΒΝ to EUR20bn, most probably kept in safe deposit lockers or even private “hideaways”.