HUFFINGTON POST
07/21/2015 02:41 pm ET Updated Jul 21, 2015

How Bad Was The Run On Greek Banks?

Things got pretty intense.
Credit: Milos Bicanski/Getty Images

The amount of money withdrawn from Greek banks last month was unprecedented, according to Greece's central bank.

The Bank of Greece said Monday that the value of bank notes in circulation reached 50.5 billion euros by the end of June -- an increase of 5 billion euros from a month earlier.

Further, the bank said most of this cash did not leave the country, suggesting that Greek citizens are choosing to stash their savings at home, HuffPost Greece reported

The data confirms just how precarious the situation was with Greek banks before the country limited individual cash withdrawals to 60 euros per day on June 29. In the days before the capital controls were introduced, long lines formed at Greek banks and many ATMs ran out of cash as people grew fearful of the possibility of an economic collapse.

The rush on the banks took place as it became increasingly clear that the Greek government would miss a debt repayment deadline with the International Monetary Fund without negotiating a new bailout deal with its international creditors. Amid the crisis, the European Central Bank declined to increase its Emergency Liquidity Assistance to Greek banks.

The new data shows that Greece's dependence on the ECB went up significantly in June. ECB funding of Greek banks through the ELA funding rose from 77.6 billion euros at the end of May to 86.7 billion euros by the end of June, the Greek central bank said.

Hopes for a new bailout program have been raised in recent weeks after Greek Prime Minister Alexis Tsipras accepted a tough package of reforms in an effort to jump-start negotiations. On Monday, Greek banks reopened after three weeks, but a weekly withdrawal limit remains in place.

 This article originally appeared on HuffPost Greece and was translated into English.

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