The total value of private deposits in Greek banks down to €170.1bn, the lowest in over five years and 30% below their peak of December 2009. The steady decline in deposite is partly due to worried citizens removing their savings in case the Greek banking sector should collapse, or even leaving the country altogether. But it also reflects that fact that people have been using their savings to keep afloat, following rising unemployment and wage cuts. In Brussels, EU officials have denied claims that Spain may have to seek financial help. European Commission spokesman Amadeu Altafaj has just told a press conference that media reports that Spain may seek bailout aid are "completely without foundation". Altafaj added that the private sector should be able meet most of the cost of overcapitalizing Spain's banks. As we flagged up, analysts fear that the Spanish government will be unable to pick up the bill.
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