* FinMin says total of 2 bln euros returned since election
* Conservative-led govt says will keep Greece in euro zone
* Cash was stashed at home and in safe deposit boxes
By George Georgiopoulos
ATHENS, June 27 Millions of euros are trickling
back into Greek banks from savers reassured by the result of the
June 17 election, though amounts remain a fraction of what was
withdrawn ahead of the poll, bankers said on Wednesday.
Bankers said the pace of deposit inflows set immediately
after the vote had slowed, but money was still returning after
the formation of a conservative-led government reduced the
chances of the country crashing out of the euro zone, at least
in the short to medium term.
Yannis Stournaras, a liberal economist who was named finance
minister on Tuesday, told a book presentation hours before his
appointment that total inflows after the vote had touched 2
billion euros ($2.5 billion).
That is still well below the sum that Greeks withdrew in the
days leading up to the election, when up to 800 million euros
was flying out daily from major Greek lenders, according to
"It is mostly money stashed at home that is returning. We
are seeing about 10 million euros a day, down from about 15 to
20 million previously," said a banker at small Greek lender, who
asked not to be named.
Much of the withdrawals had been stashed away at home or in
safe deposit boxes, out of fear that victory for the radical
leftist Syriza bloc committed to tearing up the terms of
Greece's international bailout could send the country back to
the drachma currency.
A second banker at a large Greek bank said: "The numbers are
not huge but there is a daily return. We are seeing about 20
million euros brought back daily."
Between the onset of the debt crisis in late 2009 and April
2012, Greek banks had lost around 30 percent of their deposit
base, or 72 billion euros. Outflows have picked up at times of
acute political instability.
NO BIG REVERSAL
The pool of household and business bank deposits shrank from
238 billion euros in December 2009 to 166 billion in April,
based on Greek central bank data.
Though small savers may be slowly bringing back their cash,
the private banking sector has not seen a big reversal of
"We have not seen any serious return of private banking
money that was sent abroad," said one private banker at a
mid-sized bank, while another private banker at a small bank
said: "We had some clients return funds, transactions of 700
to 800,000 euros, but this will take time".
Deposit outflows and the so-called cash burn as Greeks tap
savings to pay bills, has forced banks - without access to
interbank funding - to derive liquidity from the European
Central Bank and the Bank of Greece.
ECB funding for Greek banks dropped to 62 billion euros in
April from 78.9 billion in March, while borrowing from the
national central bank's emergency liquidity assistance (ELA)
facility reached 59 billion euros.
The radical leftist Syriza came a strong second in the June
17 vote but the government was formed last week by the
first-placed New Democracy party in a coalition with the
Socialist PASOK and small Democratic Left.
Responding to intense public pressure, Prime Minister
Antonis Samaras has said he wants to renegotiate the punishing
bailout conditions, but not at the risk of leaving the euro.