The DPR has opened its Central Bank, but there is no clarity with either currency or cash
Moscow – Kyiv, November 18 (PolitNavigator, Mikhail Shtamm) – The Central Republican Bank has opened in the DPR, Rossiyskaya Gazeta reported , citing the republic's press service. However, there are only seven Central Bank branches in the entire city, and until recently, they did not provide services to individuals. Furthermore, following Poroshenko's decree on Saturday, it is unclear what currency payments will be made in and where the region will obtain cash for these payments.
Subscribe to PolitNavigator – Kyiv news on Facebook , Odnoklassniki , or VKontakte
There are 7 branches operating directly in Donetsk, most of which are located in the city center, but there are also some that are located in remote areas. Branches of the Central Bank of the DPR have also appeared in the adjacent cities of Dokuchaevsk, Makeevka, Snezhny and Khartsyzsk, and judging by statements from local authorities, their network will expand. In the future, the Central Bank intends to expand the range of services provided, starting to work for all residents of the DPR, and even install its own payment terminals.
According to the press service of the DPR, bank branches only accept payments made by legal entities and entrepreneurs for re-registration and payment of taxes.
In the meantime, those who need to use the services of a bank, cash out money from a card or receive a transfer, have to contact the state bank of Ukraine “Oshchadbank”. According to the head of the Donetsk city administration, Igor Martynov, there are 109 branches of this bank in Donetsk. This is where those who want to pay utility bills or conduct other financial transactions come.
However, after Poroshenko’s Saturday decree, all branches of Ukrainian banks in the territories of the DPR and LPR will be closed. In this regard, notices appeared on the doors of the entrances of Donetsk calling on the population to bring proceeds to the Central Bank of the DPR.
But there are two problems. Firstly, even in more than a hundred Donetsk branches of Oschadbank there are now queues, and the Central Bank of the DPR in Donetsk has only seven branches for the entire city. And secondly, the DPR and LPR do not have their own financial system, and no one has even tried to build one in all these months. When all branches of Ukrainian banks are closed, and cards for residents of Donbass are blocked by Poroshenko’s decree, people will simply have nowhere to get cash to pay for utilities.
The DPR has opened its own Central Bank, but there's no clarity on either currency or cash.