Bank Run Full Frontal: Ukrainians Withdrew 7% Of All Deposits In Two Days

Tyler Durden's picture

Well that escalated quickly. It seems the ouster of Yanukovych, heralded by so many in the West as a positive, has done nothing to quell the fear of further economic collapse in Ukraine:

  • *UKRAINIANS WITHDREW AS MUCH AS 7% OF DEPOSITS FEB. 18-20: KUBIV
  • *DEPOSIT WITHDRAWALS STILL HIGH IN THE EAST, KUBIV SAYS

This is around a 30 billion Hyrvnia loss (over $3 billion) in just 2 days for the banks and the new central bank chief is considering "stabilizing loans" to help banks deal with the liquidity crisis (though Ukraine's reserves stand at a mere $15 billion).

Reserves are in freefall... and will only get worse if the bank run continues...

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akak's picture

That's not exactly sweetening the deal.

Deathrips's picture

15 Billion...that ought to keep the furnace going for a few more days.

 

RIPS

JoeSexPack's picture

Too slow, Ukraine!

 

100% out last week at latest.

 

TeamDepends's picture

This means buy Facebook, right?

THX 1178's picture

Is Ukraine the first domino?

SmittyinLA's picture

FB and Twitter #Arabspring

 

They should IPO the NSA and CIA 

ThirdWorldDude's picture

Hey TeamD, I'm still waiting for you to answer some questions I had on this thread (page 2). Would you mind taking a minute and explaining to a curious mind?

TeamDepends's picture

Tyler, this could be one of the all-time ZH threads:  America, Democracy Or Republic?  TWD, we really appreciate your interest in this topic as it is of the utmost importance, but if we came off as experts it was due mostly to our exemplary oratory skills.  Like the vast majority of Americans, we were taught that the US is a "democracy" and had to find out the hard way we had been lied to.  You asked about statute law, well, that is definitely beyond our pay grade.  Any attorneys in the house?  That thread got huge, so instead of us digging around for your questions, how about you repost them here and we will do our best to answer?  Again Tyler, this would be an incredibly important thread.  Even the "smart" people we know think that "republic" and "democracy" are synonymous.

ThirdWorldDude's picture

Fair enough, +1 for that.

A word of advice - don't pimp something you don't fully comprehend, no matter how good it looks/sounds...

TeamDepends's picture

And a word of advice for you - be thankful when someone introduces you to concepts which challenge your mind and gives you references to support them.  Are we supposed to hold your hand and answer all your questions?

ThirdWorldDude's picture

You really are a self-righteous prick, aren't you?

I was baiting you into answering a question that majority of 'Muricans pretend to understand, but when you ask them for an explanation all you get is the sound of crickets.

Don't worry about me, I'm well aware of every possible distinction between those concepts even without your pathetic references that nullify themselves through reductio ad absurdum. Another advice - stop following blind leaders.

semperfidelis's picture

Soon to be worthless currency.

TheRideNeverEnds's picture

no worries, they are just using the money to buy more shares of Tesla. 

Meat Hammer's picture

What a coincidence!  I just did my bi-weekly bank run and am on the way to the coin shop because I can hand worthless paper to the coin man and he gives me real money.  It's magical, really.

swmnguy's picture

You want "magical?"  You should talk to Fonestar.

zippy_uk's picture

LONG - park your Russian tank somewhere else in exchange for some Ukranian Cash...

Colonel Klink's picture

Bank run, Bitchskis!

TheFourthStooge-ing's picture

They had seven percent of deposits on hand? Sounds like the Ukrainian banks are in far better shape than US banks.

motorollin's picture

Damn straight! A 7% withdrawl would crush the smal regional bank that I work for.

css1971's picture

3% would crush any american bank, and 1% any European one.

SillySalesmanQuestion's picture

Soooo, thats why they sent APC's...to catch the Banks running.

nonclaim's picture

Last ones get Cyprused.

disabledvet's picture

this is an interesting take on "bail ins." Confiscate "through invasion."

Have the Commanders been promised dachas and "endless women"?
My first thought is...and still remains..."this has not escalated quickly" actually.

Glad we're all on the same sheet of music vis a vis "territorial integrity."
No...I won't be kicking backing "throwing down the popcorn."

syntaxterror's picture

What's the DBPC (dead banker per capita) gonna be?

SmittyinLA's picture

If the EU or NAZI Germany just took over your govt, or was about to take over your govt, and hold a vote of Mexicans what to spend everybody's money on, what would you do with your money? 

Solarman's picture

Define who is who in your eyes.

americanspirit's picture

I wonder how much of that withdrawn paper is being turned into gold and silver. One would hope 100%.

Debugas's picture

you will not be able to buy gold or silver with hryvna because about two weeks ago hryvna convertability to USD and EUR was suspended (banks not selling USD EUR to the public)

 

for now it is just buy whatever you still can

 

and it is getting harder and harder e.g. pharmaceutical importers withhold selling various drugs for the time being speculating hryvna will fall further.

The new parliament asking them not to speculate on that

http://medicine.rbc.ua/rus/gosleksluzhba-prizvala-postavshchikov-vozderz...

negue's picture

Ah, so Ukraine is just a proving ground?

IridiumRebel's picture

Deposit flight. APCs in the streets.....This is a job for CHRISTINE LAGARDE! FORM OF IMF DEBT!

Kirk2NCC1701's picture

Ukraine: another Bitchistan for King Dollar and Prince Euro.

Russia, if you like your (gold-backed?) Ruble, you can keep your Ruble.  Hint: the currency that gets used by the most people and countries... fucking WINS.

It turns out that Sochi was more of a curse than a blessing, given that the Russian Bear was too busy putting on a show for the exact critical 3 weeks.  If they didn't act decisively against the hooligans and potential terrorists back then (before regime-change), they sure as hell aren't going to act now (after regime-change).

APCs and a boat of 200 (what's that, Cleaning & Maintenance!?) sure as hell isn't much.  It's barely symbolic -- much less tactical or strategic.  "All hat, no cattle", as they say in Texas. 

Am disappointed with the "too little, too late" moves.  Russians are playing pure defense, but their Head Coach loves to show the new (Under-Armor) uniforms of their Offensive Team.  Meanwhile, the Opposition is deep in the Red Zone, looking to score a TD.  Sorry, but I call it like I see it. 

HurricaneSeason's picture

I thought the Ukraine broke away from Russia 25 years ago and were no longer Russia's problem. They offered $15 billion cash and 33% off their gas bills and that's off the table now. Russia is building a pipeline to Bulgaria, probably because Ukraine was skimming off Europe's winter heat and not paying their Gazprom bills. I don't see how Russia is losing here. Putin said in January that he would work with the new Ukraine government regardless of who it turned out to be. He surely didn't envision rioters.  Russia cut off agricultural imports from the Ukraine and Gazprom will surely be trying to ship to Bulgaria and China instead of the Ukraine. However bad it is in the Ukraine now, it's surely going to be much worse and Russia wont need to be holding the bag with all the anti Russian propaganda in the Ukraine and elsewhere. Obama gets to pick the Ukraine leaders and Europe gets to pay the bills. Greece will look good and Russia wont cry.

AG BCN's picture

I'm going to need more popcorn. 

ghostzapper's picture

Coming Attractions:

Bank of America fights off massive bank run in response to withdrawal of 0.000000007% of all deposits.  

monad's picture

Good move, but fiat devalues in your mattress too. Buy stuff you need - food, gas, tickets out of Ukraine...

No Euros please we're British's picture

Meh, gas in a matress is not such a good idea, especially if you smoke in bed.

Serfs Up's picture

If you like your deposits, you can keep your deposits.

Dr. Acula's picture

I don't see the problem. They just walk to the vault and pull the cash out, right?

It's not like they're routinely committing fraud and violating bailment agreements.

 

Dr. Acula's picture

This is why I keep my life savings at Magic the Gathering Online Exchange.

 

Debugas's picture

http://www.xe.com/currencycharts/?from=USD&to=UAH&view=10Y

anyway most ukranians keep their savings in either USD or EUR

 

Watson's picture

Given the circumstances, it would be surprising if there were _any_ demand deposits left inside the Ukrainian banking system by this stage.

Term deposits are presumably running out 100% with the notice period.

There is no upside, but very considerable downside, associated with leaving any form of asset inside that banking system. 'Asset' includes safe custody boxes - if the banks are closed for an unexpected holiday don't think those boxes won't be subject to some sort of 'national emergency' state examination and 'solidarity sequestration'.