Ukraine Pledges to Protect Deposits as Kiev Rally Called.
Source: Bloomberg News
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, said in his first interview since being appointed Feb. 24.
A rally will be held on Independence Square this evening as lawmakers seek to install a new government. The interim administration is trying 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.
“Ukraine’s economy needs rescue and that adds pressure on the revolutionary political forces to create a truly national unity government,” said Lilit Gevorgyan, senior economist at IHS Global Insight in London, said by e-mail. “The large bailout plan that Ukraine currently seeks won’t be handed out by international donors to a weak and non-inclusive government.”
Read more: http://www.bloomberg.com/news/2014-02-25/ukraine-central-bank-seeks-to-halt-deposit-outflow-after-7-drop.html
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