ECB: Cyprus private-sector deposits fall in June

Consumers and companies withdrew deposits from banks in Cyprus in June, where big account holders in the two largest lenders were forced to take a hit as part of an international bailout.
The problem was made worse by the capital controls imposed by the Central Bank of Cyprus in order to prevent capital flight. However, this has also caused other problems with depositors withdrawing money from banks and businesses starved fro cash.
Private-sector deposits fell by 7.6% to 37.6 bln euros after a roughly 2% fall in May, European Central Bank data showed last week.
The data showed that deposits in another southern European country mired in the debt crisis remained relatively stable.
Spain's private sector deposits rose by 1.0% in June. They fell by 0.6% in Greece, and by 0.1% in Italy and Portugal.
Monthly fluctuations in the figures are common, though sharp consecutive drops in countries with stable banking systems are unusual.
The data, which are for all currencies combined, are not seasonally adjusted and differ slightly from national central bank figures. They exclude deposits from central government and banks.