Wednesday, November 26, 2014

The Crisis In Ukraine Has Wrecked Its Banking System

People stand in line to withdraw money at an automated teller machine (ATM) of Ukrainian bank Privatbank in Simferopol, Crimea, on Mar. 14, 2014. Vasily Fedosenko / Reuters

Russia Has Basically Blown Up Crimea's Banking System -- Steve Stecklow, Elizabeth Piper, and Oleksandr Akymenko, Business Insider

Outside a high-rise building on the outskirts of this disputed region’s capital, a steady stream of frustrated residents exited a government office, clutching folders of bank records and shaking their heads in disgust.

“They are not returning the money,” complained Margarita Pobudilova, a 77-year-old retired factory worker who for months has been unable to access more than $US3,000 of her life savings.

Ten months after Russia invaded this Black Sea peninsula and seized it from Ukraine, the financial fallout is still being felt. Thousands of ordinary citizens have little or no access to their funds. Losses for Ukrainian banks continue to mount as billions of dollars worth of loans they issued in Crimea go unpaid. Lawyers for the banks are preparing legal actions against Russia, which confiscated many of the banks’ buildings, equipment and cash.

Read more ....

Update: Russian Central Bank Official Says Crimeans Should Repay Loans After All -- Moscow Times

My Comment: Meanwhile .... the cash squeeze is starting to hit rebel held regions in eastern Ukraine .... Ukraine gov't cuts cash off to rebel areas -- AP

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