Ukraine Central Bank Promises Liquidity To Local Banks, With One Condition

Tyler Durden's picture

While the "developed" world scrambles to find a way to provide Ukraine with a bailout in such a way that Russia doesn't turn off the gas, Ukraine is doing some scrambling of its own to assure the local banks, which have been plagued by both bank runs and a collapse in the currency to record lows over the past few days, that it will be there to provide funding on a business as usual basis. Itar-Tass reports that "Ukrainian banks will be provided with necessary liquid assets, including cash." But there is a condition: the funding will only come "if they will remain under open control of the National Bank of Ukraine, the newly-appointed NBU Chairman Stepan Kubiv is quoted as saying on the bank’s official website."

From Itar-Tass:

“Financial and payment systems, which are of vital importance, operate normally, as well as the open market operations do. The situation is under control. We are getting feedback from all of the country’s banks, regardless their size”, he said.


Kuvib stressed that the National Bank’s gold reserve includes high-liquidity assets. He mentioned such priorities of the Ukrainian banking system as the protection of clients’ interests, as well as the resumption of negotiations with external creditors, the International Monetary Fund in the first place, right after the country’s new government is formed and elaboration of a strict new plan for economic and financial reforms.


“We are very determined regarding the measures, which will be applied to those who break the mandatory requirements and are involved currency speculations. I am certain the National Bank's measures will calm the markets and the people and ease devaluation fears”, the bank’s chief said.

In other words, any and all banks that want to continue operating must pledge allegiance to the brand new central bank governor Kubiv, who previously did not work for Goldman Sachs, but instead was one of the commendants for the EuroMaidan demonstrations. That is not say he has no banking experience at all: previously he used to be head of Kredbank. Who is Kredbank? As it turns out, it is the bank with the largest Polish investment in banking institution in Ukraine. Kredobank national network contains central branch and 130 outlets throughout Ukraine. Today, European investment is 99.6% in the share capital of Kredobank, Ukrainian capital is 0.4%.

At least it is clear where the Ukrainian central banker's allegiances lie, and under whose "open control" suddenly the entire Ukrainian banking sector has fallen under. And just like that, Europe knows everything these is to know about all assets held within the Ukrainian banking system by the local population.

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Johnny Cocknballs's picture

There are many who do not know they are fascists
but will find it out when the time comes
Ernest Hemingway, For Whom the Bell Tolls

IBelieveInMagic's picture

It is sad to see how easily people are misled :( The Ukranians are failing to see that they are just pawns. Stuuupid! 

john39's picture

if you like your rothschild controlled central bank, you can keep your rothschild controlled central bank.

TheFourthStooge-ing's picture

You do the hokey pokey and you turn yourself around...

if they will remain under open control of the National Bank of Ukraine

that's what it's all about.

Johnny Cocknballs's picture

You know who has a good sense of the mind fuck of American propaganda?

The North Koreans

For all their crazy, which is mostly a result of the fear of being invaded and regime changed by the US [and US exercises are meant to stoke those fears] they are still Koreans, and the Koreans have a very old, very wise culture.

I'm not saying I agree with all of their assessments above, but it is fascinating to see how North Korea views us as being brainwashed.

wintermute's picture
Ukraine Central Bank Promises Money Printing

What else can they do?  Same one-trick pony as all of them.

Zwelgje's picture

The documentary in your link is actually made by an European. But he disguised as a North Korean production to have more effect.

Johnny Cocknballs's picture

ah, good to know.  I feel a little 'tricked' but... still a decent little doc.

123dobryden's picture

:) under any circumstances do not mention this anywhere near som ukrainian, because he may be from "Right sector"


putin tries hard to make them look facist, nazi, thugs, provocateurs, skinheads and so... but they say that you are either with their revolution or you are against them, no matter how shitty race you are, they are quite different from political party Svoboda there, that openly preaches racist hatered

JustObserving's picture

There are many who do not know they are slaves 
so they make very good slaves

The bells toll for all of us and a bit more stridently now with the developing disaster in the Ukraine.

Renewable Life's picture

Absolutely great quote!!

But I find the language this Central Bank fuck use interesting!! "Remain under open control" is perticuliarly interesting I think!!!

Dollarmedes's picture

"Early in life I have noticed that no event is ever correctly reported in a newspaper, but in Spain, for the first time, I saw newspaper reports which did not bear any relation to the facts, not even the relationship which is implied in an ordinary lie. I saw great battles reported where there had been no fighting, and complete silence where hundreds of men had been killed. I saw troops who had fought bravely denounced as cowards and traitors, and others who had never seen a shot fired hailed as the heroes of imaginary victories; and I saw newspapers in London retailing these lies and eager intellectuals building emotional superstructures over events that had never happened. I saw, in fact, history being written not in terms of what happened but of what ought to have happened according to various 'party lines'."

George Orwell, who fought in the Spanish Civil War.

AlaricBalth's picture

"You will never find peace with these fascists
You'll never find friends such as we
So remember that valley of Jarama
And the people that'll set that valley free.
From this valley they say we are going
Do not hasten to bid us adieu
Even though we lost the battle at Jarama
We'll set this valley before we're through.
All this world is like this valley called Jarama
So green and so bright and so fair
No fascists can dwell in our valley
Nor breathe in our new freedoms air."

Woody Guthrie

Bangin7GramRocks's picture

Kinda like pussy George Bush the younger portrayed as stronger than his war hero father and war volunteer John Kerry. Lies and spin at its best!

rotagen's picture

They certainly do things differently from us here in america,

silvermail's picture

Today, the Russian Foreign Ministry made ??an official statement that the authorities in Kiev captured rebels. And that is a legitimate President of Ukraine it is Yanukovych only, right now. Text of statement by the Russian Foreign Ministry website:

In the Charter of the IMF have provisions prohibiting lending to such countries in which legitimacy of power is questionable. That is, if the IMF or any country that will lend money for criminals who illegally seized power in Ukraine, then such a loan Ukraine is not obligated to repay back.

Sleepless Knight's picture

Central Bank Slaves - save yourselves and just say NO!

Skateboarder's picture

Spot on, Sleepless. Default, Ukraine! Do not drink from the fountain of debt, lest you want to relive the fate of Greece.

NotApplicable's picture

Default? Why should they be dumb enough to do that?

What they should do is to repudiate this odious debt, rather than defaulting due to inability to repay.

Default is still a central banker's friend, as it keeps the "debtor" in a subordinate position (and they've enough trouble with that already).

TPTB_r_TBTF's picture

Drink from the fountain of debt for as long as it flows!

There will be plenty of time to default after the fountain runs dry.

LawsofPhysics's picture

All wars are in fact banker's wars.  hedge accordingly.

Johnny Cocknballs's picture

The Vikings did it for loot, pussy, and Valhalla. 

Now their descendents are too afraid of being called names to prevent massive immigration from Muslim countries they have no historical ties with, but who have made a custom of committing crimes including rape, especially rape, in the big cities.

It's too bad the Vikings were tamed. 


Most of us.


Jack Burton's picture

Johnny, Too true, being Swedish, I know only too well.

TPTB_r_TBTF's picture

the Jewish God of War is stronger than Odin.


I wonder what ever happened to Odin?  Do gods go into retirement?

Kirk2NCC1701's picture

How do YOU spell Vampire Squid?

Who Laughed's picture

Interesting article, terrible grammar.

Schmuck Raker's picture

Reading ZH for over a year, and you're still not used to it?

Who Laughed's picture

Reading for the best part of 2 years and only noticing the lapse over the last 6 months. As long as the quality of content is there I guess can't really complain 

NotApplicable's picture

Obviously, not all Tylers are equal. And since the ads here are so destructive to a browser, I have to block them, so the Tylers cannot afford to hire an editor.

I take all of this as a sign that at least ZH isn't a psyop, like the slick and polished HuffPo. Instead it's likely just a site that they monitor.

Real Estate Geek's picture

It's just the ZH patois.  You'll get used to it.

Schmuck Raker's picture


"Kuvib stressed that the National Bank’s gold reserve includes high-liquidity assets"

Bullion, not so much?

buzzsaw99's picture

they all float down here

royal's picture

welp, so much for all that speculation over who controls who (the central bank or the private banks)

Frostfan1's picture

I guess they gotta keep the country running somehow.  I mean, are the Russians tankers honoring the debt?

Full Faith and Credit's picture

A few days ago Kubiv stated that bank withdrawals were highest in the East - an attempt to hold the nation together one ATM at a time?

q99x2's picture

A Bankster running a western east-nation. Now that's just a great fucking idea. I wonder where they came up with such insight. Did he work for Goldman Sachs M'Fers.

How bout locking up all your banksters into prisons and using an open source crypto-currency you stupid sons a bitchez.

Phuk u's picture

Default and start again ? Well that would upset the banksters. If one could could get a rebate on

Yanukovich's and his cronies profligacies that would bale out Ukraine for a while.

observer007's picture

Video: Russian flag raised on top of parliament building in Crimea, Ukraine


Newsticker Ukraine

Videos latest

ciscokid's picture

Bye bye Ukraine........

Volkodav's picture

Polish bankers...

Problem is these still haven't figured out the left hand thread light bulbs yet..

tony wilson's picture

lord i dontes wanna stray

off topics un alls

but lord eye has questions

so many questions.

whatever happened to iraqs gold bullion

whatever happened to libya its gold and its sovreign wealth funds.

who is norway paying off for peace and calm.

germany why youse not talkin about your stolen gold.

and ukraine who is lookin after your gold bars.

so many questions

so few rothschild chatham house answers.


i thinks i will lay down wats wid all dis psy operations

and frank kitson style  pseudo gang confusions

dark pools of soros's picture

take the logic further...   the western part of Ukraine should go back to Poland anyway ... any Ukraine money is tied up in the russian controlled east


Give Kiev down to Odessa over to Poland.. let Odessa's port be the gift that buries the hatchet


Jorgen's picture

take the logic further...   the western part of Ukraine should go back to Poland anyway ... any Ukraine money is tied up in the russian controlled east

Give Kiev down to Odessa over to Poland.. let Odessa's port be the gift that buries the hatchet

Reattaching western Ukraine back to Poland is unlikely to happen. What is more likely to transpire in the very near future, are thousands of Ukrainian refugees flooding into Poland.

RaceToTheBottom's picture

I believe a chunk would belong to Slovakia....

TPTB_r_TBTF's picture

Maybe the Grand Duchy of Lithuania would like a piece too.

Uber Vandal's picture

Slave screams he's going to cause the system to fall.

Slave screams but he's glad to be chained to that wall.

Happiness in Slavery : Nine Inch Nails

NotApplicable's picture

Thanks, this is just the song I needed to make it through this fucked up day.

Don't open your eyes you won't like what you see.
The devils of truth steal the souls of the free.

Cannon Fodder's picture

I am currently reading the biography of Che Guevera. Last night I happened to be reading the section about after the Cuban overthrow in which he, with no central banking experience, being a doctor, was appointed as head of the Cuban central bank. So not exactly an unprecendented appointment.