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One of the great fears of the euro crisis is that there could be a run on the banks. In particular, experts fear that speculation of a Greek exit from the euro currency could cause a major run in Greece, potentially causing the banking system to collapse.But according to Bloomberg’s Elisa Martinuzzi and Christos Ziotis, Greeks are withdrawing their money at a pretty high clip:
Greek deposit outflows have accelerated before this weekend’s elections, two bankers familiar with the situation said, on concern the nation may move closer to abandoning the euro.
Daily withdrawals have increased to the upper end of a 100 million-euro ($125 million) to 500 million-euro range this month, one banker said, asking not to be identified because the figures aren’t public. A second banker said the drawdown may have exceeded 700 million euros yesterday. An official for the Bank of Greece (TELL), the Athens-based central bank, declined to comment.
At 500 million euros a day, deposit outflows would probably exceed the previous monthly peaks since the outset of the crisis, and wouldn’t be sustainable if they continued over several months, according to one person.
Reuters recently reported that EU leaders are considering ATM withdrawal limits and border checks should thing really deteriorate in the wake of a Greek exit.
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