Deposit Insurance in Ukraine?

[mattsh]

Anyone here know the state of deposit insurance in Ukraine?  Two years ago, it seemed to be a ridiculously low number, like $250.  Speaking to someone at Aval a few days ago with my poor Russian and his adequate English, it sounded like it's now 50,000 Hr, or around $10,000. 

Can anyone confirm? 

[P-N]

I am shopping around for it now.  When I find the best price, I will let you know who, what and where I went to.

If it is rediculously expensive, I will simply withdraw all the cash and spend $15 per month on a security box in the bank vault and put it in there for a while.  I know it will not get the interest but also zero risk 

[Vera]

About 3 months ago I was standing in line in one of Kiev banks and read a notice on the cashier’s window; it said that the deposits are insured up to $ 10, 0000 or 50, 000 Hr.

[P-N]

About 3 months ago I was standing in line in one of Kiev banks and read a notice on the cashier’s window; it said that the deposits are insured up to $ 10, 0000 or 50, 000 Hr.

I assume by that (always a dangerous thing to do) the first $10,000 is insured for free.   

I will continue to shop around and see what I can find for anyone with more than that in the bank.  Thus far I have been directed towards and Austrian insurance company by a Ukrainian banker I trust........in as much as you can trust a Ukrainian banker 

[seek77]

Yes, bank deposits are insured by some government agency (like the FDIC in USA) up to 50,000 Hr.
But I am uncertain if they allow multiple accounts under slightly different names like they do in USA.
Also, do you really think the national government has the resources to pay out much if several banks do go under?  I doubt it.

This insurance idea is really just something to try to calm nervous depositors so there won't be a run on the banks.  There is no real intent that the national government will have to ever pay out anything.

My lady friend thinks there is a fund of money sitting there that is available to be paid out.  But there is no such fund in any country.  But the national goverment can print more money to pay out if necessary.  Of course inflation will then skyrocket.

[seek77]

I am shopping around for it now.  When I find the best price, I will let you know who, what and where I went to.

If it is rediculously expensive, I will simply withdraw all the cash and spend $15 per month on a security box in the bank vault and put it in there for a while.  I know it will not get the interest but also zero risk 

I  have  never heard of any private insurance for bank deposits.  But if there really was a massive run on the banks, then any insurance company would also be overwhelmed by the situation and would default on their obligations.

Also, surprised that as a man who has done business in Ukraine for a period of time such as yourself would actually think there was zero risk to your money if it were in a security box inside a Ukrainian bank.

[Vera]

I totally agree. It is only my belief and a gut feeling ,so to speak, but I do not believe that if $10,000 is "guaranteed", the bank client can be confident about getting it in case of the bank failure.
Just look at the recent situation- when they "guaranteed" that everyone would get "compensation" payment form the government for the deposits they lost on soviet bank deposits! (This was promised by Timoshenko in the begining of 2008).
Anyone seen the huge crazy lines in the SBERBANK to get those?
Well guess what- it was on first come first serve basis- they "ran out of money" and I know SO MANY people who were entitled to those compensations and never got any. The explanation given at the bank -RAN OUT OF MONEY. But the government promised everyone will be compensated. Mind you ,that "compensation" was limited to $ 200 or $500 and not $10, 000.
I realize these two scenarios might not be quite the same but you get the idea. If they could not pay out the promised and "guaranteed' $200 then one has to be NAIVE (like me) to believe they will get their $ 10, 000.
And again if they don't, who dot hey complain to? What do you do, sue the government or your bank???

This insurance idea is really just something to try to calm nervous depositors so there won't be a run on the banks.  There is no real intent that the national government will have to ever pay out anything.

[P-N]

Also, surprised that as a man who has done business in Ukraine for a period of time such as yourself would actually think there was zero risk to your money if it were in a security box inside a Ukrainian bank.

Both in Moscow and Ukraine I have used them frequently and never ever had a problem.  When was the last time you heard of a bank in Ukraine getting the vault entered.........or even robbed?

As I use OTP for the most part, but not exclusively as they do not accept Sterling, which is in Ukraine but not Ukrainian and never had a problem with them with my accounts or use of their vaulting system, I consider them to be as safe as any other bank here.  In Moscow I used Master Bank for the same services and again never had a problem.

[P-N]

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3174217/Financial-crisis-Countries-at-risk-of-bankruptcy-from-Pakistan-to-Baltics.html

Ukraine has an 80% chance of defaulting on loans and OTP (one of the banks I use here) is bailed out by the Hungarian government yesterday.  My UK bank, RBS looks like it will be the first to take up "part nationalisation" and UBS my Swiss bank has suffered greatly with "write-downs".

Maybe time for to look at Eire (or similar) where all deposites have been guaranteed by the Eire government, stick it in a metal box in a vault or under the matress 

The time has arrived to "surf the net" and see what is out there instead of being a bystander for the most part. 

[andbod]

Insurance on deposit has been raised at 50.000 hrv already few months ago. In case of bank default they are guaranteed.
Nik please advise if you find a solution from an insurance company. I don't think it will help but my bank needs more 10 days to free the deposit and so I decided to keep my money there (if something happens it will happen much before than 10 days).

[andbod]

I think that deposits refund works at the Ukrainian way :

http://www.ac-rada.gov.ua/achamber/control/en/publish/article/main?art_id=1091294&cat_id=335

[Carlushika]

KIEV, Oct 15 (Reuters) - Ukraine's central bank will raise the amount of immediate compensation given for lost deposits to 100,000 hryvnias ($20,408) from 50,000, the bank's council head Petro Poroshenko said on Wednesday.

http://www.guardian.co.uk/business/feedarticle/7877071

[andbod]

Starting from today immediate compensation given for lost deposits is set to 150,000 hryvnias. Not a big change at least for whom has a Euro or USD deposit due to current hryvnia cross-rate but still a good news for market stabilization and for most of Ukrainians that hasn't huge deposits.

[Carlushika]

Starting from today immediate compensation given for lost deposits is set to 150,000 hryvnias. Not a big change at least for whom has a Euro or USD deposit due to current hryvnia cross-rate but still a good news for market stabilization and for most of Ukrainians that hasn't huge deposits.

Instructions just received from my beloved to give you a THANK YOU after I told her the news!

[Graham]

For sure - have look at Ireland as a safe haven for your deposits right now.  All are government guaranteed. 

There is a huge influx of offshore funds as a result and you can get some great deals - some competing banks are offering up to 10% gross interest.

I'm local so if anyone is interested I can shop around and post the top 10 offers.

Also, I can provide all the contact details you need to transact remotely.

BTW - I'm not a banker and have no vested interest!

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