Customers queue to withdraw hyrvnia currency from an automated teller machine (ATM) outside a Privatbank CJSC bank branch in Kiev on Feb. 20, 2014. Vincent Mundy/Bloomberg
Ukraine Vows To Protect Bank Deposits As Government Vote Delayed -- Bloomberg
Ukraine is weighing measures to stem cash withdrawals after as much as 7 percent of deposits were taken from banks during last week’s bloody uprising, underscoring the need for action to fend off a default.
Withdrawals peaked with as much as 30 billion hryvnias ($3.1 billion) Feb. 18-20 as police and anti-government demonstrators fought in the center of Kiev, Natsionalnyi Bank Ukrainy Governor Stepan Kubiv, 51, appointed Feb. 24, said yesterday in his first interview.
The interim government is scrambling to secure as much as $35 billion in financial aid to fend off a possible default. Acting President Oleksandr Turchynov yesterday pushed back a parliamentary vote on the formation of a new administration to Feb. 27 after indicating that a new administration should be formed quickly. The U.S. and the European Union have pledged support to the new government.
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Previous Post: Ukraine's Economy Will Collapse
Update: Bank Run Full Frontal: Ukrainians Withdrew 7% Of All Deposits In Two Days -- Zero Hedge
My Comment: I first reported on these bank runs a few days ago .... but it appears that the situation has gotten worse from last week. Russian banks are also now dangerously exposed .... raising fears in Moscow. Ukraine needs emergency funding now .... but I just do not see that happening. The EU has limited resources. The U.S. is not going to give money .... certainly not the tens of billions that Ukraine needs. And Russia .... they do not even recognize the new political leaders in Kiev. And as much as the EU, Russia, and the U.S. try their best to calm the situation .... when it comes to money in an emergency situation no one is going to trust what the government is saying. Bottom line .... this is not going to end well.
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