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Ukraine Capital Control Crunch: Largest Bank Limits Cash Withdrawals To $100 Daily
As we warned on Friday, the military escalation in Ukraine has had dire consequences for the financial state of the country, its banks, and ultimately its people. The central bank promised to rescue domestic banks so long as they agreed to its complete control and it appears the first consequences of that "we are here to help you" promise is coming true:
- UKRAINE'S PRIVATBANK LIMITS ATM WITHDRAWALS TO UAH1,000/DAY ($103/day)
Privatbank is Ukraine's largest bank and while claiming this move is temporary (just like Cyprus' capital controls), the bank has also ceased new loans amid what it calls "geopolitical instability". In summary, you can't have your money back! Expect long angry lines at Ukrainian banks on Monday morning (and at the pace of collapse in the Hyrvnia, hyperinflation next).
Ukraine's largest commercial bank, Privatbank, announced temporary limits on cash withdrawals for its account holders and suspended writing new loans, saying in a statement the measures were intended to stop those undermining the political situation in the country. "A temporary limit on withdrawals is needed to stop the forces that are working to destabilize the situation [and] are using the cash for [their] sabotage," the bank said in a statement. The bank didn't clarify which political forces it was referring to.
The bank first announced withdrawal limits of 1,000 hryvnia ($103) a day at both automated teller machines and in over-the-counter transactions.
...
Privatbank's announcement was the first case in which a major Ukrainian bank has limited customers' immediate access to cash in the local currency since the military tensions erupted. Privatbank is the largest retail bank by number of clients in Ukraine, a country of approximately 45 million people.
Last week, the National Bank of Ukraine introduced a $1,500 daily limit on foreign-currency withdrawal.
But perhaps the most notable, somewhat hidden, comment from the bank was this:
Privatbank said it was suspending all its credit lines issued to both private and corporate customers, including credit cards. It said it would no longer accept debit cards from other banks in the Crimea.
In other words, we won't allow the people of Crimea (the region now in play with the Russians) to 'run' on our bank...
Privatbank said its measures were a "rational" response to the current situation and they were designed to help the bank serve its customers and protect the national currency.
We wonder what 'loophole' the uber-wealthy will find (as in Cyprus deposit shifts to the UK) to extract their deposits before the real capital controls collapse the currency.
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The shit storm is brewing.
Here is the architect
Covert United States foreign regime change actions
AKA COUP D'ETATS
2 During the Cold War
2.1 Communist states 1944–89
2.2 Syria 1949
2.3 Iran 1953
2.4 Guatemala 1954
2.5 Tibet 1955–70s
2.6 Indonesia 1958
2.7 Cuba 1959
2.8 Democratic Republic of the Congo 1960–65
2.9 Iraq 1960–63
2.10 Dominican Republic 1961
2.11 South Vietnam 1963
2.12 Brazil 1964
2.13 Ghana 1966
2.14 Chile 1970–73
2.15 Argentina 1976
2.16 Afghanistan 1979–89
2.17 Turkey 1980
2.18 Poland 1980–81
2.19 Nicaragua 1981–90
2.19.1 Destablization through CIA assets
2.19.2 Arming the Contras
2.20 Cambodia 1980–95
2.21 Angola 1980s
2.22 Philippines 1986
3 Since the end of the Cold War
3.1 Iraq 1992–96
3.2 Afghanistan 2001
3.3 Venezuela 2002
3.4 Iraq 2002–03
3.5 Haiti 2004
3.6 Gaza Strip 2006–present
3.7 Somalia 2006–07
3.8 Iran 2005–present
3.9 Libya 2011
They have no gas left in the tank. Putin will economically cripple them as well as militarily
EU natural gas import sources by country
Ya Gata LOVE All These Banks... Bitchez
If history is anything to go by... Half a dozen Russians will simply fly to London and empty all the Ukrainian banks from there.
GOLDMan Is Hovering........... Bitchez
Betcha Nasty McMunger wishes he had all them hyr-nirvana's sewn into his undies round abouts
http://www.amazon.com/Hidden-Contents-Travel-Passport-Wallet/dp/B006C8TPNM
What a bunch of banana republic. I'm glad our govt will never let that happen here
You forgot the LOLs from the end of the sentence.
With this gang lols would be redundant and insulting
Look at this.... it has relevence.
https://www.youtube.com/watch?v=fb1zZoUfMGE
Looks like they come complete with brown skid marks to.
The most important part of that chart you posted is to understand that Norway is in decline.
Today on CNN a former US ambassador to Ukraine said the EU should look to the USA for it's gas needs. We, apparently, are prepared to send natural gas to the EU. No, I'm not drunk, I heard it just 20 minutes ago on CNN.
the biggest problem was the coup plotters only had part of the seige mentality correct. The seige was easy to pull off in a single capital city... Kiev. But the real power (financial, economic, energy and military) in Ukraine is in the South and East, all influenced by Russia. The coup plotters are about to be on the recieving end of the next seige.
.
Can anybody tell me what the Hell the difference is between what Russia is doing now (to protect their interests), and what the US has been doing all over the globe since 9/11 and beyond? Or, maybe it's considered different when drones do it instead of tanks ...?
The difference is they're not us.
They don't have slow-motion eagles and military fly-overs at baseball games.
Great one as always Meat Hammer! The difference between the USA invasion of Iraq, and Russia's actions, not yet takes, are that we are we, and that makes all the difference.
Paul Craig Roberts said yesterday that the Neocons in Washington have lost their minds, they are provoking Russia in a crazy "end game" to put NATO missiles and tanks a short flight or drive from Moscow. According to Roberts, if Putin backs down, it will be seen as unconditional surrender to NATO. I too believe we are in an end game here. The west has gone as far as they can go, now we are down to the nuclear option.
Government of USA and/or its lackies doing it = "protecting vital national interests"
Governments of other nations doing it = "Evildoing"
"Can anybody tell me what the Hell the difference is between what Russia is doing now (to protect their interests), and what the US has been doing all over the globe since 9/11 and beyond?"
Look at the military budgets maybe.
The difference is simple; the Russians will win.
"Berezovsky Defects After Just One Day On The Post"
Says: Warship is have no gas to make move...
It's winding down and Putin is laughing to the bank.
I hope all these people have silver or gold, otherwise it's bread lines and refugee camps for them!!!!
Good thing America doesn't have some bullshit toilet paper currency, not backed by anything real, but bluster and press conferences............oh wait!!!
you forget, our currency is fully backed by the full faith an presence of our military
And John Kohn's bold comments
I stated that it was...."back by bluster and press conferences"!
Because you can't be serious about the current military doing anything but spying on and droning everything in sight!! There is no doubt we have a distinct technological advantage over the peoples of the third world, that we have been attacking and bombing into oblivion for the last 25 years!!
However, there is zero evidence that we can execute a real military strategy on the ground that accomplishes anything other then mass causilties and chaos, and results in withdrawal!! Not surrender, not victory, just withdrawal!!!
And you think, this is what backs your global currency??? What backs your USD is the simple fact, that the rest of the world has been either too lazy or scared to switch to something else, but believing it has something to do with Americas superior performance on the battlefields of the ME or because we drive our ships all over the planet, non stop, is well.......untraveled and uniformed to the reality of Americas place in the world ala 2014!!!!
For the record I think the individuals in the US military are exceptional people for the most part, including members of my own family and very close friends, but reality is reality, and I say the same thing to them as well!! And reality is this.......the next "era of history" on this planet has already begun, and it's going to be dominated and completely ruled by hard assets and natural resources, toilet paper currencies are over and will die a horrible death in this new era that is emerging!! The US Military, it's citizens, and it's politicians better realize this and that our USD is just another paper currency, that won't and can't be defended going forward!!!
"... backed by the full faith an presence of our military"
But mostly the presence of our military...which is now being drastically cut.
I guess we're about to see what a currency backed by faith alone is worth.
$100 seems plenty I'm sure the vodka and street whores are pretty cheap
Silver and Gold would not get through the airport xrays.
What they have to have to be portable is bitcoins, and everyone reading this knows it.
Yes. BTC would get through the x-rays if you flee.
Gold, platinum and silver are good if you stay.
Yes. And you can buy precious metals with bitcoins after you fleed (at least for now), just as you demonstrated (thank you!), DCRB!
The NSA is able to observe thousands of citizens engaged in phone sex but was unable to see the Ukranian crisis coming? Clearly they are underfunded by several billions.
The NSA needs to learn to actually read Zero Hedge, and not just use it to track our IP addresses.
We can be sure they're doing both.
I am sure the NSA played a part in helping the State Department destabilize the Ukraine, they did however forget to tell Victoria Nuland not use her Obamaphone.
Tangible assets for barter bitchez!
Well, I see the EU-supported junta running Ukraine now is doing exactly what the EU loves to do: freeze assets and steal everything. They are doing it fast this time because Putin is going to stop them in short order.
You happy now, Ukrainians?
They don't need their money when they can breathe in the sweet air of freedom!
How could they not be happy after the success of their glorious, peaceful, legitimate people's uprising?
Yes, the news is full of USA and EU freezing bank accounts of Russians. All they know to do is steal money. It is what they do.
You did notice that the new Ukraine "PM" (and I'm not sure how legitimate that claim to power actually is) was a former exec at the Ukrainian central bank?
That's telling. Same story everywhere. Central bank bondage.
People still have bank accounts?
How quaint.
Silver, gold, BtC. Those are the options in that situation.
vindicating fonestar one revlution at a tme
Yes, both of you (CPL and jQp) have that right.
I see very little action in bitcoin in the Ukraine. People in these countries are just happy to have food in times like this. Since they have no 2nd Amendment, throw out the idea of defending themselves. The few that have any PMs are lucky if they can keep them
Remember its not neccisarily the people in the country buying Bitcoin, its the people all around the world looking at Ukraine going shit this is probably going to happen here as well.
Same with Gold and Silver
And when those real life examples, such as bitcoin don't help? Then what would you say?
Well I could be involved with bitcoin, but it didn't help.
Are you saying those in the Ukraine are ignorant of bitcoin? Are they ignorant of PMs?
In fact I would say yes, Do you know the average lifespan of any currency is less then 50 years?
Do you know that gold/silver DECLINED during the Great Depression?
Why do people ignore historical facts only to repeat them?
PM's declined less than most everything else during the Depreesion.
Therefore they gained in value(purchasing power).
My family did very well back then buying productive assets cheaply with gold.
+1 for Rhetorical skill
(But I question if the low-information goldbugs really understand the implications of your qualification.)
ZH is filled with gold nazis, and the tylers have to feed them for click revs.
Whenever "capital controls" come into a headline, the story is actually about bitcoins, because everyone by now understands it's the only thing immune to airport xray.
What exactly are "gold nazis"?
They are guys who wear swastika armbands dyed yellow.
Well, that cleared THAT up.
(not)
GoldMoney works too.
A lot of people don't even have bank accounts over there. It's still largely cash economy. You see guys walking around with inches-thick rolled cash.
Meanwhile in the UK RBS wants to charge people (in effect charge more because they don't pay any interest) for having a current account.
Bank robbers the lot of them
Old news in the US. Banks here have charged high service charges on checking accounts for years now.
If you like your cash you can keep your cash---IN THE BANK!
Your money in the bank really isn’t yours and I suppose this was on the orders of the IMF.
could have a problem with counterfeiting here.
"rational response" indeed...if the money has any value whatsover.
are we talking dollars or euros?
the article does not say.
more than likely the answer to that question is yes...while the world may love Russia here...they do not love their money.
A "full scale invasion" will cause great financial pain to the Russian people if they make the choice to go "all in." The price of coal has already collapsed in the USA...but it's not because it's not available (like in China where they don't have a proper logistical system to get the coal to the folks who need it to stay warm and cook with.)
Europe has the euro...they will not be going cold in the winter. It is also possible for them to start importing natural gas from the USA...and yes...we have this crazy Kid called "Elon Musk" and his "gigafactory."
Self-driving vehicles "frees up a lot of time" with which to do economical activities.
READ, for the love of God.
Was it a head wound by any chance?
Gee, I could withdraw $100 worth of Hyrvnia, or $1200 in foreign currency.
What to do, what to do...
Ukrainians got goxxed.
And it's gone...
http://www.youtube.com/watch?v=-DT7bX-B1Mg
The importance of saving 'money.'
Since the American people appear to be comfortable to the idea of major wars their own government's initiate on their behalf with other superpowers these days...
Anyone want to hazard a guess on what the "we want moar war" DOW and S&P will be doing this time tomorrow morning?
+400 would be my guess
Gold -$30 at 08:30 ET, then +40 by NY close; +$10 net.
Wrong, as usual.
Not only no, but HELL no. If you don't have inside information, playing the markets tomorrow is a fool's game.
Unless you are short
I'd like to go back to the old days as I'm old enough to remember when wars were "bad for the markets" and "peace good" for the markets.
Yellen Copter coming in... The sheeple need toilet paper for when the SHTF.
Welcome to Europe where banking standards are modern and controlled!
Why not take it all and issue food tickets? If you do capital control do it right, full in!
Right. Humans are nothing but capital labor so let's limit that to do it right. Full in! Not something I believe in but in other words, I am taking your statement and taking it to its final conclusion. Only certain people may work and prosper. Everyone else is cannon fodder.
How many events like this does it take for people to reaise just how much of a game changer bitcoin is.
I see very little to no action involving bitcoin in the Ukraine. So just how are you using this situation to propagandize bitcoin to your favor?
Yeah because my one comment on zerohedge is going to pump the market.
All i am saying is that people who hold Bitcoin are not affected by capital controls and it is evident that capital controls are coming thick and fast from all over the world.
Good for people that can look beyond short term price signals and instead on the rock solid fundamentals.
Of course Bitcoin is a game-changer...just ask the investors at Mt. Gox.
They got their games "changed" dramatically.
Their games where changed because they gave their money to some else to look after ... it does matter whether that money is Bitcoin, Gold or Silver.... if you do that, you are likely to get robbed.
Look after your own money.... for Bitcoin that means cold storage wallets, for Gold and Silver - boating accidents
People can't buy shit with bitcoins unless of course you expect them to eat TV's and the sheets they buy off O.
How would have bitcoins helped anyone in Ukraine but the crooks laundering money? That is really the only utility of bitcoin and the price has stayed high because unfortunately there are a bunch of people needing to launder money. It will end in RICO and jail cells for the big bitcoin players.
What follows capital controls is refugees.
THAT's how bitcoin matters. The refugee of photographs is the poor person fleeing some place unlivable. The middle class refugee is the guy with his family at the airport going to do an extended visit to family somewhere else, livable.
When he gets there, he can sell bitcoins for local currency and have a start in life. If he tries this with gold, it gets xrayed at the airport and confiscated.
Look, everyone reading this knows this is reality. Bitcoin is a game changer and governments are going to slowly grow to hate it.
Is this the way to get rich?
Soros invests 5 billion into ukrains revolt....and goes short on the S&P 1.3 billion just before the shit hits the fan...in ukrain.
http://blogs.marketwatch.com/thetell/2014/02/17/soros-doubles-a-bearish-...
What will Soros make if the S&P tumbles into a sinkhole? There are bad, bad people indeed...
@Addicted
Sweet deal Obozo's puppet master (soro's) has going. Soro's has lived way too long already. What a mess the U.S. arms al-Qaeda in Syria and supports Nazi's in the Ukraine.
Funding unrest and pimping the S&P is nothing for a guy who used to sell out his own back in the day.
Popcorn: check
Beer: check
Comfy chair: check
Factor 5,000,000 sunblock in case of unexpected nuclear "events": check
Lets get this bitch going!!
The Fund of National Assets of Ukrain (which was managing privatization of national assets) will be liquidated and the assets RE-PRIVATIZED (apparently many objects were sold for pocket change to Yanukovich buddies)
it has not been decided yet whether the current owners of the previously privatized properties will be compensated or not
http://www.rbc.ua/rus/news/economic/fgiu-budet-likvidirovan-zakon-o-priv...
So everyone bashed bitcoin because some fucker at Mt. Gox screwed up.
But when this happens....
"In summary, you can't have your money back! Expect long angry lines at Ukrainian banks on Monday morning"
Here's your $100 now STFU.
Bitcoin has nothing to do with it except some ZH bitcoin trolls want to promote bitcoin. Otherwise bitcoin would/should have never been brought up.
Every nation has capital controls, including the US. If a major US bank fails, don't expect the FDIC to save your accounts. Your accounts are now owned by the banks according to the Frank/Dodd Bill. You are just a creditor, last in line.
What is going on with the Ukraine is much more serious. Another door way to WWIII. Will it happen? Who knows. How much confidence do you have in Obama to handle it?
+1 for This.
Also, if you want a store of wealth, I hear that gold is artificially cheap these days. And it can't be taken away from you because either your bank closed or some online exchange goes down.
Just sayin'.
Both of you know perfectly well why every capital controls article is about bitcoins.
THERE IS NOTHING ELSE IMMUNE TO AIRPORT XRAY.
Simply that. If you can no longer live somewhere, YOU LEAVE. Bitcoin is the only way the middle class refugee can take wealth wherever he is going.
Why do you assume:
1) That it is or would be automatically beneficial to leave one's home and one's home country in the case of economic and/or monetary collapse? Protecting one's wealth and one's savings WITHIN one's own borders is in many if not most such situations much more important than the ability to travel with one's wealth across one's own borders.
2) That flying is the only means of travel?
Why do refugees flee one place for another? When one place is not livable, you leave.
The middle class refugee flies. He'll take a bus if the airports are closed, but there is no bus service from Cyprus to Italy.
Most people throughout history have NOT automatically left their homes, or their home countries, solely due to a monetary and/or financial collapse. War is the usual reason for resorting to such desperate measures.
"Bitcoin is the only way the middle class refugee can take wealth wherever he is going."
Correct because the internet is be far and wide the safest place on earth. Right? I mean nobody using bitcoin has ever been traced, hacked, and emptied.....oh wait yeah that happened because of a retard on national television. But seriously with all that's know of the USA's monitoring and privacy invasion, WHY would you trust in electronic currency?
It shit goes bad, let me know how BitCoin treats you all. I am going to stick to growing plants and stocking up on things I can trade / barter with.
Your strategy of growing things etc is absolutely correct IF you dont have a war raging through your patch.
But the discussion was about dealing with the situation where it becomes very sensible to leave the local area.. In that situation, using Bitcoin to transport wealth is the best tool available at present. For stability reasons, you would probably convert back to Gold, Silver or farm land when you get to your new home area ... but for transporting wealth .... it is unbeatable.
http://www.bbc.com/news/world-europe-26410431
Apologies for the BBC link (filthy MSM i know!), but: the head of the Ukraine Navy who's only been in the job since yesterday has now defected to the Russian side. Truly awesome.
Chief Commander of the Ukranian Naval Military Forces Denis Berezovsky who was just days ago assigned by interim President Alexander Turchinov has just apparently defected and has sworned to defend crimea people
http://conflict.rbc.ua/rus/glavnokomanduyushchiy-vms-ukrainy-prisyagnul-...
This most likely seals the fate of Crimea
most citizens probably don't have $100 while the kleptocrat's money and gold is long gone
Hmmm, are your numbers right????
"Ukraine's Largest Bank Limits ATM Withdrawals To $1000 Daily."
Source: ALLCRIMEA.NET
UAH 1,000 per day- with the f/x alone it will be $5 in a few days...
Edit: and now it looks like they're trying to put the toothpaste back in the tube, but the googlebot's Russian is horrid.
http://news.allcrimea.net/news/2014/2/20/nalichnosti-v-bankomatah-ne-hva...
Because 1000 turd units sounds a lot better than 100 turd units.....
Look at Yatsenyuk greeting his facist army...with a Nazi Salute...he is supported by the EU and the US.
https://twitter.com/ZeroCoolGR/status/440174634739449856/photo/1
Anybody shown that picture to Cammeron yet ?
I know Angela saw it.
Maybe controls have something to do with this: http://www.euronews.com/2014/02/28/ukraine-hopes-for-aid-soon-pm-says-wi...
Afterall, they need something to secure these loans! Why not steal everyones money for their personal benefit? It worked well for the previous guy, he had a pirate ship.
ETA- The beginnings of austerity measures! All for the greater good of course. Shared sacrifice.
At this point it's just funny, nothing more.
I would have already had my money out of my account if I lived in Ukraine.
Heck... I just about have most of our money out of the US banks...... for this very reason poeple!!!
it is a tragedy
average wages in ukraine are at $300 per month
You can buy a lot of perogies with $100 per day.
I could see them do this in the US but with a twist.......you can't withdrawl and then because of it you can't pay bills and then all the creditors claim everything you have as theirs.
Wow!
That plan is so perfectly simple, and so perfectly evil! I have never considered such a scenario, but I can oh so easily imagine it being put into play. Banksters will be banksters, after all.
You can bet the wealthy Ukrainians packed their gold and silver in the trunk, loaded up the kids and wife and drove as far West as possible weeks if not months ago.
We have no opinion on an Arab -Arab dispute.
-- US Ambassador to Iraq April Glaspie
We are living in interesting times.Yes,grab some popcorn and watch the death of the
Petrodollar.No mention of Syria by MSM for a month.Maybe it wasn't worth WW3 after all.
Could it have something to do with Saudi Arabia being a huge defense equipment importer?
Nudge Nudge wink wink