Fitch: Greek bank strain 'manageable' despite uncertainty of Sunday's national election

ATHENS, Greece – The ratings agency Fitch says political uncertainty ahead of Sunday’s national election in Greece could further test the country’s banks but described the strain as “manageable.”

The agency said Monday it expected a 2 per cent drop in Greek deposits due to the Jan. 25 election, compared to a drop of more than 9 per cent when two consecutive elections were held in 2012 and the country faced an exit from the eurozone.

Weekend opinion polls showed conservative Prime Minister Antonis Samaras’ New Democracy party trailing the anti-bailout Syriza party in voter support and that a coalition government is likely to emerge from Sunday’s vote.

Greece’s four major banks are seeking emergency liquidity assistance just in case, which requires approval by the European Central Bank.



Fitch statement: