Party of Regions Flushed 11 billion of Foreign Exchange Reserves Down the Drain, and are now Looking for Something to Take

President of the Association of Ukrainian Banks commented on the legislative initiatives of deputy Sigal.

Sugoniako Alexander, an expert on banking commented to Censor.NET on legislative initiative of Regions' Yevhen Sigal, who proposes to ban the public against foreign currency deposits are charge 25% tax on interest rates on deposits.

"The paradox is that Ukraine is supposed to have one currency - the hryvnia. And the currency would have to fulfill all five functions of money. One of them is savings. People are supposed to have been keeping money in the local currency but they do it in dollars. Meanwhile, regional deputies with their specific way of thinking, instead of working on the issue of improving the quality of our currency in terms of how it fulfills the function of savings, rather than to make people richer, the country richer - they think of how to take everything away. Of course, they think if people sell 22 billion of their foreign exchange savings and the money will be somewhere near the National Bank, it will be quite good. But they have already flushed 11 billion of foreign exchange reserves down the drain," says Sugoniako.

In respect to taxes on interest rates on deposits, Sugoniako did not approved under the current environment:

"Let's take 400 billion of deposits. The average rate on 10% of them - that is 40 billion. Fourth of that amount - $ 10 billion. Well, yes, take it to the budget cut and used in the campaign. Rather than work to improve wages and make people richer."