Greek financial tragedy worsens

Leading Greek banks desperately need more than £13bn of government support under a 28bn euro support scheme launched under the previous administration in 2008. They are fighting to cope with losing £8.8bn of deposits, or 4.5% of the total in the banking system, as local savers move their money out of the country. Pressure on the Greek Government also intensified as interest rate yields on 10-year government bonds hit a new record of 7.2% yesterday with markets more worried the beleaguered country might default on its debt. However, the higher cost of borrowing will make it even harder...