— €3 bln in UK and Switzerland —
Wealthy Greeks and companies, spooked by the debt crisis hitting their country are believed to have moved up to EUR 3 bln out of the country in February, of which about 10% or EUR 270 mln came to Cyprus.
Foreign observers believe that Switzerland, the UK and Cyprus are among top destinations for Greeks moving their money abroad, while in January about EUR 5 bln of deposits were moved out, according to the latest figures available from the Bank of Greece, the Telegraph reported.
Figures released by the Central Bank of Cyprus showed that total deposits in Cyprus during the month of February increased by EUR 1.67 bln to EUR 60.04 bln, according to data compiled by the Financial Mirror.
Out of the EUR 1.67 bln increase, about EUR 270 mln referred to other euro-area depositors, believed to be of Greek origin while EUR 894 mln referred to non-euro area depositors, believed to be mostly Russians. The Central Bank of Cyprus does not break down the nationality of the non-resident depositors.
The report appeared to contradict recent data from the European Central Bank and comments to Reuters by analysts and Greek banking sources, who said there was no clear evidence of a major, extended deposit outflow from Greek banks.
The UK newspaper said that big depositors have been clamouring to move their cash to international financial firms such as HSBC or France's Societe Generale, which operate large branches in the country. They are among those to have received several billion euros of new money, it said without specifying sources.
HSBC's private banking in the country was understood to have been flooded with business, while the local operations of several other major international banks have already seen large inflows of money. A spokesman for HSBC declined to comment, the newspaper said.
Switzerland, the UK and Cyprus have been the largest recipients of the money, with the wealthiest Greeks looking to move their deposits to Swiss banks accounts to escape the more punitive tax measures many fear will be introduced in the wake of the country's economic crisis, the newspaper said.
ECB DATA
However, latest ECB data showed no clear trend for deposit flows out of Greek banks.
Deposits at monetary financial institutions in Greece, denominated in all currencies and excluding the Eurosystem reporting sector, rose to EUR 362.3 bln in February, the highest level since records began in March 1998, from EUR 353.1 bln in January, the data showed.
Large monthly fluctuations in deposits are common; deposits fell by nearly EUR 10 bln between June and July last year.
Commercial bankers and analysts told Reuters in February that while there was speculation in markets and wealth management circles about capital flows from Greece, they had not seen a big, extended outflow on a net basis.
Concern about the banking system's health or the risk of Greece leaving the euro did not seem serious enough to prompt such an outflow, they said.
National data for Greek commercial bank deposits in February was not yet available on Bank of Greece's website on Tuesday.
"NO GREEK CASH HERE"
Meanwhile, in fresh comments to Reuters, central bank officials in Cyprus said that reports that its banking sector was awash with Greek cash after depositors shifted funds to escape the Greek debt crisis were exaggerated.
"The numbers mentioned in the (Telegraph) article are exaggerated," said a central bank source, speaking on condition of anonymity. "Only a small percentage of deposits from Greece have been diverted to the Cyprus banking sector."
