Ukraine received $400 million from the World Bank to help the banking sector recover. However, government assistance to the banking sector hasn't been without controversy. Kyiv Post looks at allegations of fraud in government aid meant to re-capitalize Ukrainian banks. An earlier post discussed the investigation by the Interior Ministry, below an excerpt form the Kyiv Post article.
Most Ukrainians distrust their banks anyway, so the burgeoning scandal will only reinforce these opinions. The lack of faith undermines Ukraine’s ability to emerge from one of the worst financial crises in its 18 years of independence. If disillusionment rises, more citizens may stop trusting banks altogether with their deposits or stop repaying their loans.
Oleksandr Savchenko, who resigned as deputy head of the central bank on Sept. 11, said the central bank’s recapitalization of commercial banks was done in an unfair and non-transparent way that allowed insiders to profit on currency manipulation and speculation.
Savchenko told Korrespondent magazine in an interview published on Sept. 18 that at least one scheme involved selling dollars to favored banks at the official NBU rate, which is much lower than the commercial rate. Those who benefited, Savchenko said, profited greatly.
Posts
0 comments:
Post a Comment