ECONOMY

Cyprus bank deposits drop 7.6 percent in June

Consumers and companies withdrew deposits from banks in June in Cyprus, where big account holders in the two largest lenders were forced to take a hit as part of an international bailout.

Private sector deposits fell by 7.6 percent to 37.6 billion euros after a roughly 2 percent fall in May, European Central Bank data showed on Thursday.

Banks on the island were shut for nearly two weeks in March after Cyprus agreed a 10-billion-euro bailout, which forced major depositors to pay part of the cost of the rescue.

Capital controls are still in place on the island, with limits on how much people can transfer from their accounts.

Cyprus is gradually easing the controls.

[Reuters]