Ukrainian authorities can now refuse to issue deposits and exchange currency
Kyiv, January 12 (PolitNavigator, Alexander Semenyuta) – After the landslide devaluation and bankruptcy of three dozen banks, the Ukrainian National Bank is preparing another unpleasant surprise for Ukrainians. According to the laws voted on December night, the NBU can refuse to return deposits to bank clients, money from current accounts, as well as to purchase foreign currency.
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The NBU received these draconian powers under the new Law of Ukraine "On Measures Aimed at Promoting the Capitalization and Restructuring of Banks." The Law of Ukraine "On the National Bank of Ukraine" has been supplemented with a new article, "Features of Ensuring the Stability of the Banking System," writes banking market analyst Oleksandr Okhrimenko in a blog post on the Korrespondent website.
It can be little consolation for bank clients that the NBU management will not be able to make such decisions on its own. The approval of the Financial Stability Board is required, which must be created by presidential decree.
Such a Council has not yet been created, but most likely it will appear soon enough. As a result, draconian restrictions may be decided at any time. And the NBU will be able to introduce a moratorium, the duration of which will be determined independently.
Ukrainian authorities can now refuse to issue deposits and exchange currency.