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 Party of Regions Wants to Ban Ukrainians from Foreign Currency Deposits

Regions deputy Yevhen Sihal is proposing the Parliament to prohibit banks from attracting deposits of citizens in foreign currency.

This is stated in bill # 2400, registered in the Parliament on 26 February 2013, reports Economic Pravda. The draft law provides for amendments to the law "On banks and banking activity". As stated in the explanatory note during the year the financial institutions raced each other in trying to offer investors the highest rate, with the result of the maximum yield for hryvnia deposits reaching 28% per annum.

"However, despite this level of profitability of hryvnia deposits, investors prefered less profitable investments in foreign currency, resulting in the amount of foreign currency deposits increasing by almost 30% in 2012 as the total volume of individual deposits in the banks increased by 19%," says in the note.

In support of the need for passing the bill the document states that this regulation is necessary for further volume growth in lending resource of commercial banks in national currency, their cheapening, creating the conditions in which the population would actively direct their income on goods and services of domestic producers.


 
 
 
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