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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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Thu, 02/27/2014 - 13:43 | 4485312 Johnny Cocknballs
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


Thu, 02/27/2014 - 13:53 | 4485369 IBelieveInMagic
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! 

Thu, 02/27/2014 - 14:06 | 4485442 john39
john39's picture

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

Thu, 02/27/2014 - 14:17 | 4485505 TheFourthStooge-ing
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.

Thu, 02/27/2014 - 14:45 | 4485530 Johnny Cocknballs
Johnny Cocknballs's picture

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

The North Koreans

http://www.youtube.com/watch?v=-25HOVRtaMk

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.

Thu, 02/27/2014 - 16:35 | 4486104 wintermute
wintermute's picture
Ukraine Central Bank Promises Money Printing

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

Thu, 02/27/2014 - 16:48 | 4486155 Zwelgje
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.

Thu, 02/27/2014 - 23:42 | 4487594 Johnny Cocknballs
Johnny Cocknballs's picture

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

Thu, 02/27/2014 - 14:40 | 4485611 123dobryden
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

Thu, 02/27/2014 - 13:53 | 4485372 JustObserving
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.

Thu, 02/27/2014 - 14:12 | 4485476 Renewable Life
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!!!

Thu, 02/27/2014 - 14:49 | 4485662 Dollarmedes
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.

Thu, 02/27/2014 - 15:12 | 4485792 AlaricBalth
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

Thu, 02/27/2014 - 15:39 | 4485913 Bangin7GramRocks
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!

Thu, 02/27/2014 - 17:54 | 4486422 rotagen
rotagen's picture

They certainly do things differently from us here in america,

Thu, 02/27/2014 - 18:02 | 4486446 silvermail
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:
http://x2t.com/286356

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.

Thu, 02/27/2014 - 13:42 | 4485313 Sleepless Knight
Sleepless Knight's picture

Central Bank Slaves - save yourselves and just say NO!

Thu, 02/27/2014 - 13:44 | 4485325 Skateboarder
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.

Thu, 02/27/2014 - 14:37 | 4485600 NotApplicable
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).

Fri, 02/28/2014 - 15:33 | 4490410 TPTB_r_TBTF
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.

Thu, 02/27/2014 - 13:44 | 4485322 LawsofPhysics
LawsofPhysics's picture

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

Thu, 02/27/2014 - 14:48 | 4485658 Johnny Cocknballs
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. 

Well. 

Most of us.

;o}

Thu, 02/27/2014 - 18:31 | 4486588 Jack Burton
Jack Burton's picture

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

Fri, 02/28/2014 - 15:30 | 4490392 TPTB_r_TBTF
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?

Thu, 02/27/2014 - 13:47 | 4485342 Kirk2NCC1701
Kirk2NCC1701's picture

How do YOU spell Vampire Squid?

Thu, 02/27/2014 - 13:48 | 4485347 Who Laughed
Who Laughed's picture

Interesting article, terrible grammar.

Thu, 02/27/2014 - 13:52 | 4485365 Schmuck Raker
Schmuck Raker's picture

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

Thu, 02/27/2014 - 13:58 | 4485406 Who Laughed
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 

Thu, 02/27/2014 - 14:42 | 4485620 NotApplicable
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.

Thu, 02/27/2014 - 15:29 | 4485874 Real Estate Geek
Real Estate Geek's picture

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

Thu, 02/27/2014 - 13:50 | 4485357 Schmuck Raker
Schmuck Raker's picture

Wait...

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

Bullion, not so much?

Thu, 02/27/2014 - 13:51 | 4485358 buzzsaw99
buzzsaw99's picture

they all float down here

Thu, 02/27/2014 - 13:53 | 4485371 royal
royal's picture

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

Thu, 02/27/2014 - 13:54 | 4485376 Frostfan1
Frostfan1's picture

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

Thu, 02/27/2014 - 14:00 | 4485377 Full Faith and ...
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?

Thu, 02/27/2014 - 13:56 | 4485390 q99x2
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.

Thu, 02/27/2014 - 13:56 | 4485393 Phuk u
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.

Thu, 02/27/2014 - 13:59 | 4485409 observer007
observer007's picture

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

http://homment.com/russian-flag

 

Newsticker Ukraine

Videos latest

Thu, 02/27/2014 - 14:00 | 4485412 ciscokid
ciscokid's picture

Bye bye Ukraine........

Thu, 02/27/2014 - 14:02 | 4485421 Volkodav
Volkodav's picture

Polish bankers...

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

Thu, 02/27/2014 - 14:13 | 4485467 tony wilson
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.

tired

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

and frank kitson style  pseudo gang confusions

Thu, 02/27/2014 - 14:14 | 4485487 dark pools of soros
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

 

Thu, 02/27/2014 - 15:01 | 4485634 Jorgen
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.

Thu, 02/27/2014 - 18:45 | 4486657 RaceToTheBottom
RaceToTheBottom's picture

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

Fri, 02/28/2014 - 15:23 | 4490348 TPTB_r_TBTF
TPTB_r_TBTF's picture

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

Thu, 02/27/2014 - 14:18 | 4485512 Uber Vandal
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

Thu, 02/27/2014 - 14:45 | 4485643 NotApplicable
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.

Thu, 02/27/2014 - 14:26 | 4485544 Cannon Fodder
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.

Thu, 02/27/2014 - 14:46 | 4485648 123dobryden
123dobryden's picture

did he shut it down?

Thu, 02/27/2014 - 14:47 | 4485650 NotApplicable
NotApplicable's picture

Che was a doctor? LOL

Here I thought they were humanitarians, rather than typical murderous dictators.

Thu, 02/27/2014 - 14:57 | 4485722 Cannon Fodder
Cannon Fodder's picture

Well he was trained as a doctor, but apparently never practiced.

Thu, 02/27/2014 - 15:40 | 4485920 roadhazard
roadhazard's picture

Che was a doctor like Doc Holiday was a doctor.

Thu, 02/27/2014 - 17:51 | 4486411 Fíréan
Fíréan's picture

Me too, didn't have the patience for it.

Thu, 02/27/2014 - 15:01 | 4485740 walküre
walküre's picture

Anybody can type CTRL P

Central banker's main qualification is being a member of the tribe.

Nobody else need to apply.

Jewish from birth, Jewish in banking, Jewish in charge.

Thu, 02/27/2014 - 14:59 | 4485731 walküre
walküre's picture

Business as usual = Hyperinflation

CB to provide liquidity for everyone, everytime until they're sick and tired of their cash. Weimar did the same, Dollar peg removed, currency collapsing at record speed. There is no going back unless they get the Euro.

The "Kreditanstalt" crisis is now, is here. Watch out for the dominoes.

How's that restructuring of the Austrian RE lender coming? It's not!

Thu, 02/27/2014 - 15:10 | 4485781 I Drink Your Mi...
I Drink Your Milkshake's picture

Here's a casino parable.

I'm playing blackjack and loose all my chips. I go over to the pit boss and tell him to swap out the dealer with me while she takes a dinner break. Then I skim back my losses (and then some) request a bathroom break. I head for the cage, cash out and head for the door, never to be seen again.

Sound about right?

Thu, 02/27/2014 - 16:38 | 4485996 ektor
ektor's picture

Kredobank is based at Lviv.

Lviv is the town where has been created the nazi party (National Socialist party of Ukraine). 

This party has been recently renamed to Svoboda, their HQ is still at Lviv (50%+ votes to them there) ( http://en.wikipedia.org/wiki/Svoboda_%28political_party%29 )

Formers of this nazi party are Oleh Tyahnybok (still the leader of Svoboda) and Andriy Parubiy, who is the 'Commander of Maidan' ( http://www.usatoday.com/story/news/world/2014/02/27/ukraine-opposition-p... )

Andriy Parubiy is now in the government, leading the defense council.

Both have met at lviv, they were both at the town council.

So we do have a polish bank with some local fascists who are now governing.

Polish ? do we remenber their foreign minister, who did negotiate with the Maidan ??

yes Radoslaw Sikorski ! who is considered as the neocon local antenna, related to American Enterprise Institute. Rumours said that some money were sent from polish embassy to Lviv

puzzle is complete

Thu, 02/27/2014 - 18:04 | 4486455 RaceToTheBottom
RaceToTheBottom's picture

"Kubiv, who previously did not work for Goldman Sachs,..."

 

There is still time, plus what is to say that he has not received payment from the Squid.....

 

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