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UPDATE 1-Greek bank deposits tumble as pre-election tensions rise

UPDATE 1-Greek bank deposits tumble as pre-election tensions rise

(Adds background, bonds rebounding)

ATHENS Jan 29 (Reuters) – Greek bank deposits fell in
December for a third true month as savers stepped up
withdrawals amid rising domestic tensions and a awaiting of a
stand-off with a country’s general creditors, and
bankers design a trend will have accelerated in January.

The deposition outflow reported on Thursday came as Greek
financial markets have depressed neatly given final weekend’s
election feat by Alexis Tsipras’s severe Syriza party,
which has spooked investors by cancelling privatisation plans
agreed underneath a country’s general bailout deal.

Corporate and domicile deposition balances in Dec fell
2.4 percent month-on-month to 160.3 billion euros ($181 billion)
from 164.3 billion euros in November, down for a third month in
a row, according to a Bank of Greece, a aloft figure than

Bankers had estimated a decrease during about 3 billion euros
last month, partly attributing a dump to anniversary factors and
tax payments.

Deposits are approaching to uncover a steeper tumble this month as
the gait of outflows picked adult forward of a choosing on Jan. 25.
Bankers guess a serve decrease of about 8-9 billion euros,
adding to a liquidity fist on a country’s lenders.

On Thursday, bank shares picked adult after a 40
percent thrust in a initial 3 days following a election
and were adult by some-more than 12 percent.

Morgan Stanley pronounced in a customer note that Greek bank shares
had potentially reached a indicate of limit bearishness and
offered long-term value, nonetheless it pronounced deposition behaviour
remains a risk.

Fears that Greek banks could be close out of European Central
Bank appropriation if Athens clashes with a euro section partners and
exits a assist programme have smashed a sector.

The liquidity fist has forced banks to boost their
borrowing from a European Central bank by 25 percent last
month to 56 billion euros.

(Reporting by George Georgiopoulos; Editing by Giles Elgood)

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