14371
46 Ukrainian Banks Go Bankrupt
World Economy

46 Ukrainian Banks Go Bankrupt

The Deposit Insurance Fund of Ukraine (DIFU) will not be able to repay people their losses and will have to rely on the external funding from the EU and, in particular, European taxpayers.
Forty-six banks went bankrupt in Ukraine over the course of one year, Managing Director of the Ukrainian Deposit Insurance Fund Konstantin Woruschilin told the Ukrainian news agency UNIAN.
He explained that there are several reasons for the mass bankruptcy of Ukrainian finance institutions. First of all, it is “the immoral behavior of bank managers”. According to Woruschilin, bank employees had been stealing the money and used it for their own purposes.
The second reason is the drop in exports, the consumption decline as well as high production costs, Woruschilin said.
The DIFU makes every effort to repay Ukrainians their losses. However, the financial resources of the fund are insufficient, reaching a total of $16.1 billion as of April 1.
In order to meet its obligations to the banks’ customers, the fund will have to rely on external funding. According to the German magazine “Deutsche Wirtschafts Machrichten”, the main burden will ultimately fall on the EU taxpayers who will have to pay for the mismanagement in the Ukrainian banking sector.

 

Short URL : http://goo.gl/P6zPmy

You can also read ...

Cybercrime cost has jumped by $155 billion since 2014.
Global businesses are losing the equivalent of nearly 1% of...
US Presses India to Cut Tariffs
US businesses and diplomats are pressing India to cut tariffs...
Pakistan to Be Placed Back on FATF List
Pakistan will be placed back onto an international terrorism-...
UAE Inflation  to Rise to 3.3%
Inflation is expected to rise to 3.3% in the UAE as the 5%...
Turkey will have the widest current account deficit this year at 4.5% of GDP, followed by Argentina and Colombia.
As the US and European countries embark on a monetary...
The ECB expressed more confidence that inflation would converge over time to its 2% target.
Released within 24 hours of each other this week, the minutes...
Europe’s main London, Frankfurt and Paris markets barely budged in early moves.
A stronger dollar and slightly higher global borrowing costs...
Fitch in November affirmed the country’s BB+ stable outlook rating.
Fitch, the ratings agency that cut South Africa’s sovereign...

Trending

Googleplus