(MENAFN- Gulf Times) Greece's net liabilities to the Eurozone's bank payment system decreased slightly in August while Germany's net claims rose further, data from the European Central Bank showed yesterday.
The Target 2 system facilitates payments between banks in different Eurozone countries by channeling them through each national central bank's account at the ECB.
The latest data shows payments by Greek banks to institutions in other Eurozone countries exceeded flows in the opposite directions by ‚¬101.64bn ($113.24bn).
Greece's net liabilities hit ‚¬107.70bn at the end of June, their highest level since late 2012, when the Greek government decided to introduce capital controls.
Cross-border payment imbalances increased during the 2010-2012 Eurozone debt crisis as the private sector withdrew capital and banks turned to the ECB for funding because banks from the stronger economies stopped lending to them.
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