Ukraine Goes Cyprus 2.0, To Tax Deposits Over 100,000 Hryvnia (To Appease IMF?)

Tyler Durden's picture


It would appear the IMF's dirty little fingerprints are all over this latest piece of legislation in Ukraine. The Ukraine Finance Ministry is proposing to take a very-similar-to-Cyprus approach to bailing in its despositors:


This would appear a measure designed to stabilize the budget for potential IMF negotiations and fits perfectly with what the IMF has consistently hinted as the next steps for many nations.


This is further to the news last week that a 25% deposit "tax" was being considered...

Via Tax News,

Ukraine's parliament is to consider draft laws which would ban foreign-currency bank deposits and introduce a 25% tax on interest on deposits in banks and other financial institutions in circumstances where the interest received is more than 5% above the rate set by the National Bank of Ukraine.


The proposed amendments to banking and tax legislation were put forward by Yevhen Sihal, who is a member of the country's ruling Party of Regions. In an explanatory note submitted with the drafts, he argued that the higher tax rate will encourage consumer spending, reduce the cost of business loans, and provide extra funding for the country's Pension Fund. Sihal also explained that his tax proposal is based on the experience of the Russian Federation.


Sihal's proposals have united the National Bank of Ukraine (NBU) and the country's Communist Party in opposition. The NBU was quoted as saying that it was concerned about the politicization of economic issues, and that its policy was to increase the deposit base in line with international practice, while Communist leader Petro Symonenko suggested that the owners of large deposits will simply move their funds abroad to avoid the tax.

We assume, just as with Cyprus, that the big money has already left the building leaving small businesses and the average joe to foot the IMF-demanding bill (for the good of the country) to get their bailout funds.

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Thu, 03/20/2014 - 13:28 | 4573246 Al Capowned
Al Capowned's picture

Got Bitcoin?

Thu, 03/20/2014 - 13:30 | 4573255 fonestar
fonestar's picture

Just keep your "money" in dollars and banks you pathetic sheep.

Thu, 03/20/2014 - 13:34 | 4573276 john39
john39's picture

a hearty welcome to zato puppet status...

Thu, 03/20/2014 - 13:37 | 4573297 Billy Sol Estes
Billy Sol Estes's picture

Bitcoin is easy to trade when there is no electricity.

Just whip out a sticky note and write, "IOU 1 man" on it and it is good to go.

Thu, 03/20/2014 - 13:38 | 4573304 wallstreetapost...
wallstreetaposteriori's picture


Thu, 03/20/2014 - 13:40 | 4573309 wallstreetapost...
wallstreetaposteriori's picture

More bank bail-ins......   When are people gonna learn this type of shit isn't bullish. 

Thu, 03/20/2014 - 13:41 | 4573322 quintago
quintago's picture

You can't make this shit up. The rest of Ukraine is going to want to join Russia after hearing this news.

Thu, 03/20/2014 - 13:46 | 4573362 BlackChicken
BlackChicken's picture

That's the reason for the war games; keep the sheep in line and have boots on the ground and lots of weapons in case they want freedom too.

What a disaster. Does anyone on the EU/US side ever think of the next move before making the first?

Thu, 03/20/2014 - 13:48 | 4573385 Dr. Richard Head
Dr. Richard Head's picture

So when will the financial media hint that since the US supports this government in Ukraine and now Ukraine bailing in their banks with depositors that perhaps this bailin policy is endorsed by he US government?  I won't hold my breath.


That could never happen here? /s

Thu, 03/20/2014 - 15:25 | 4573915 Latina Lover
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The Raping of the Ukraine by the IMF  has just begun.

Thu, 03/20/2014 - 17:47 | 4574511 Tabarnaque
Tabarnaque's picture

Look at Ukraine rush back to Russia at eh terms of the IMF will be way to bitter. I give them one year to have their own counter revolution in Kiev.

Thu, 03/20/2014 - 13:41 | 4573326 quintago
quintago's picture

You can't make this shit up. The rest of Ukraine is going to want to join Russia after hearing this news.

Thu, 03/20/2014 - 13:46 | 4573363 semperfi
semperfi's picture

exactly Putin's plan - which is why he is just sitting back and waiting - won't take long - Putin 3  ObamaNazis 0

Thu, 03/20/2014 - 14:45 | 4573692 SWRichmond
SWRichmond's picture

Welcome to the EU!  We congratulate you on your membership!

Give us your money.

Thu, 03/20/2014 - 14:05 | 4573495 Crash Overide
Crash Overide's picture

So wait, the people have to pay for the bailouts?

Thu, 03/20/2014 - 22:14 | 4575380 TheReplacement
TheReplacement's picture

Didn't they freely vote for Yankabitch before they threw him out?  Whatever debt he ran up belongs to the people - they voted for it.

At least that seems to be the view of the Putin fanboys.  They spout how Yankabitch was elected and there was a coup and yadda yadda...  If everything was so great then how come such an already poor country has taken on such a huge debt and has nothing to show for it?

Thu, 03/20/2014 - 13:43 | 4573334 BaBaBouy
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100K Hyvernias, Whats That Worth, $89. ???

Thu, 03/20/2014 - 13:49 | 4573392 Dr. Richard Head
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A hyvernia sound like a medical condition involving the vulva (aka US politicians).

Thu, 03/20/2014 - 22:16 | 4575390 TheReplacement
TheReplacement's picture

Svedish hyvernia (hernia) ya.


Svedish HyVernia (Hi Vern, ya).

Thu, 03/20/2014 - 14:12 | 4573520 Ayreos
Ayreos's picture


Thu, 03/20/2014 - 13:42 | 4573331 tmosley
tmosley's picture

Bitcoin isn't for trading when there is no electricity, and if the place where you are has no electricity, you don't want to buy things there anyways.  It is for getting around capital controls.

You leave the area that doesn't have electricity and find your bitcoins waiting for you, no matter where you go.

Thu, 03/20/2014 - 14:58 | 4573754 Dr. Kenneth Noi...
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Got EMP?

Thu, 03/20/2014 - 22:18 | 4575397 TheReplacement
TheReplacement's picture

We have a bogo event going on for EMPs and shoes right now!

Thu, 03/20/2014 - 13:59 | 4573455 Bunga Bunga
Bunga Bunga's picture

Right, just trade paper wallets.

Thu, 03/20/2014 - 13:55 | 4573426 Blazed
Thu, 03/20/2014 - 14:59 | 4573763 roadhazard
roadhazard's picture = lmao

Thu, 03/20/2014 - 14:14 | 4573277 Deathrips
Deathrips's picture

Ukraine and EU, E U and TPTB ..... so happy together!

Bahhh ha haaa ha ha doobidy dooobiaaaaa laaa la la!

So how is the WEATHER?



Thu, 03/20/2014 - 13:44 | 4573348 frenzic
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Because the "value" of bitcoin only declined 3,46% in the last 24h.

Thu, 03/20/2014 - 13:46 | 4573367 fonestar
fonestar's picture

Yes, it's doomed!!!

Thu, 03/20/2014 - 14:00 | 4573458 Bunga Bunga
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See, it's the END! Bitcoin is dead, done, finished.

Thu, 03/20/2014 - 14:28 | 4573584 frenzic
frenzic's picture

I should have said that the fall from 1095 in december to todays 590 is pretty fucking awesome stuff and that BTC is a great store of value because of it. No doom here. Now move along, nothing to see here.

Thu, 03/20/2014 - 17:48 | 4574515 frenzic
frenzic's picture

sure enough crickets and a downvote. predictable as always

Thu, 03/20/2014 - 14:45 | 4573679 TPTB_r_TBTF
TPTB_r_TBTF's picture

just because its anonymous founder abandoned it, does not mean it's doomed!

Thu, 03/20/2014 - 13:49 | 4573387 semperfi
semperfi's picture

you should have kept your silver - anything that you cannot hold in YOUR hand will soon vanish

Thu, 03/20/2014 - 14:00 | 4573463 Bunga Bunga
Bunga Bunga's picture

I can hold a fart in my hand.

Thu, 03/20/2014 - 14:07 | 4573503 crash commando
crash commando's picture

Long oil, gold, bitcoin.  Short farts.

Thu, 03/20/2014 - 15:02 | 4573775 ThirdWorldDude
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Need a lighter?

Thu, 03/20/2014 - 13:30 | 4573258 BlackChicken
BlackChicken's picture

Got something in your hands like gold/silver?

Oh yeah, forgot to add Die Bankers Die...!

Thu, 03/20/2014 - 13:44 | 4573350 Carl Popper
Carl Popper's picture

It is very hard to tax what cannot be found

Gold, bitchez

Thu, 03/20/2014 - 13:54 | 4573422 AmericasCicero
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Gold, guns, and grain.


Why grain?  I use it to make beer.  And beer doesnt start with a "g"

Thu, 03/20/2014 - 22:22 | 4575409 TheReplacement
TheReplacement's picture

Grain alcohol might be better.  You can use it for cooking, cleaning, fuel, and drinking.  Besides, if you ever need to have a self destruct mechanism, an exploding still can help (so don't keep it in the house...)

Thu, 03/20/2014 - 14:42 | 4573675 BlindMonkey
BlindMonkey's picture

Now I lay me down to sleep. Die fucking bunker die. I pray my soul to keep. Die banker die. You know the rest. Sing along if you want.

Thu, 03/20/2014 - 15:11 | 4573822 BlackChicken
BlackChicken's picture

Catchy tune, the kind that you just can't stop humming all day long ;-)

Fri, 03/21/2014 - 06:55 | 4576102 Harrison
Harrison's picture

Dark and lonely on the summer night.
Kill my landlord, kill my landlord.
Watchdog barking - Do he bite?
Kill my landlord, kill my landlord.
Slip in his window,
Break his neck!
Then his house
I start to wreck!
Got no reason --
What the heck!
Kill my landlord, kill my landlord.
C-I-L-L ...
My land - lord ...

Thu, 03/20/2014 - 13:31 | 4573260 Soul Glow
Soul Glow's picture

Gold, silver.

Thu, 03/20/2014 - 13:31 | 4573264 Renewable Life
Renewable Life's picture

Putin just wants you too pay your fucking gas bills, the EU wants everything in their pockets!

If your money is in a bank, it's not your fucking money, sorry people!

Thu, 03/20/2014 - 13:41 | 4573324 McMolotov
McMolotov's picture

"It's all part of the plan." —the Joker

On a sidenote, when Ukrainians inevitably start fleeing the country, they shouldn't try to carry anything too heavy or they may get a Hryvnia.

Thu, 03/20/2014 - 13:36 | 4573287 Stoploss
Stoploss's picture

Prepare for the flood of Russian re patriots..



Thu, 03/20/2014 - 13:40 | 4573317 ThirdWorldDude
ThirdWorldDude's picture

More like prepare for the counter-coup.

Thu, 03/20/2014 - 13:57 | 4573446 Freddie
Freddie's picture

They better get the billionaire oligarchs and Blackwater boys.

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