In what appears to be a desperate attempt to boost confidence in a failing financial system taken right out of the 2011/2012 playbook, over the weekend the National Bank of Greece had its latest “subprime is contained” moment and loudly announced that “the situation with deposit outflows from the country was under control” as it tried to reassure markets ahead of a Jan. 25 snap election, reports Kathimerini.
Why the urge to frontrun concerns of bank runs? Simple: the Greek media reported that there have been significant deposit outflows in recent days due to political uncertainty two weeks ahead of early elections.
Opinion polls show that the radical leftist Syriza party maintains its lead over the ruling conservatives.
“After reports about deposit outflows from the country’s banks, the Bank of Greece notes that the situation is under full control,” the central bank said in a statement.
“The Bank of Greece along with the European Central Bank are monitoring closely the developments and intervene whenever this is necessary,” it said.
Written by Tyler Durden
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