Banks and general government organizations are benefiting from their deposits at the Bank of Greece (BoG), due to high interest rates. On the contrary, the central bank is flirting with zero profits.
For the first time in many years, the country’s central bank, in its 2023 balance sheet, which it will publish in 2024, will not show a profit and will not pay a dividend to its shareholders for the current year. Among the shareholders who will not receive a dividend from the Bank is the Greek state, which has already estimated a loss of revenue of around 400 million euros due to this development.
According to the draft 2024 state budget, which was submitted to Parliament on Monday, the Bank of Greece will not pay a dividend to the Greek state in 2024.
“Naftemporiki” sources have revealed that BoG governor Yannis Stournaras has already informed the political leadership of the National Economy and Finance Ministry that the central bank will not show profits in 2023.
The reason for this development is the high interest rates for the reserves of the state organizations, amounting to 40 billion euros, deposited in the central bank, as well as the reserves of the commercial banks, amounting to 30 billion euros.
As a result of this unfavorable development, the state is expected to lose the right to collect a dividend of approximately 400 million euros in 2024. But on the other hand, it is estimated that the state will gain revenues of approximately 600 million euros from the returns on the deposits due to the very high interest rate, which reaches 4%.
