After the Cyprus situation, the number of private bank deposits dropped

According to the information provided by the European Central Bank this Wednesday, the bailout of Cyprus offered by the European Union zone caused a drop in the number of bank deposits in April throughout the continent and especially in the seventeen member states. The stressful situation in Cyprus in March will be remembered for the fact that for the first time the European zone imposed losses on the people who have large deposits, aiming to get enough capitalization for the important banks in the country.

Serious depositors in other European countries, especially if coming from troubled economics are now expressing a fear that their savings could experience the same treatment if similar situation occurs in their own countries. It came as no surprise that the level of the bank deposits made in April fell significantly. The money that were withdrawn from Cyprus were put into deposits in the banks of the neighboring countries including Bulgaria and Estonia, but also in France and Germany, Austria and Belgium, as well as in Slovakia. The number of deposits made fell in Greece and in Spain, as well as in Slovenia and the Netherlands. As a result of all that, the local lending in many countries have decreased and the loans to business have fallen seriously. Throughout Europe the private sector has focused on reducing the indebtedness due to the weak economics and general uncertainty among people.