ECONOMY

Drop in Cypriot deposits started in February

Consumers and companies withdrew deposits from Cypriot banks in February, European Central Bank data showed on Thursday, as the country’s financial system slipped deeper into trouble.

Cyprus on Monday managed to avert a default by sealing a last-minute deal with international lenders, agreeing to close its second-largest bank and inflict heavy losses on uninsured depositors in return for a 10-billion-euro bailout.

In February, as Germany and some other countries began to push for bank depositors to bear part of the bailout, private-sector deposits in Cypriot banks fell by 2.2 percent to 46.4 billion euros, having fallen at a similar pace in January.

Greece on the other hand, recorded a 2 percent increase in private sector deposits to 171 billion euros, while deposits in Italian banks also rose, up 1.3 percent at 1.5 trillion euros.

[Reuters]