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Ukrainians queue for lost savings | Ukrainians queue for lost savings |
(about 2 hours later) | |
Millions of Ukrainians have queued at banks across the country to claim compensation for bank savings lost in the collapse of communism. | Millions of Ukrainians have queued at banks across the country to claim compensation for bank savings lost in the collapse of communism. |
Claimants braved freezing temperatures - with at least two pensioners dying in the process. | |
Each applicant is able to withdraw a maximum of 1,000 hryvnas ($198; £101). | Each applicant is able to withdraw a maximum of 1,000 hryvnas ($198; £101). |
They are being encouraged to put the money - the equivalent of a month's wages for the average Ukrainian - into a savings account. | They are being encouraged to put the money - the equivalent of a month's wages for the average Ukrainian - into a savings account. |
Economists have warned that a sudden cash injection into the economy could worsen inflation in Ukraine, currently running at 16%. | Economists have warned that a sudden cash injection into the economy could worsen inflation in Ukraine, currently running at 16%. |
Chaos | Chaos |
Many Ukrainians built up savings during the Soviet era because, with consumer goods rare, there was little to spend money on. | Many Ukrainians built up savings during the Soviet era because, with consumer goods rare, there was little to spend money on. |
But when communism collapsed and market reforms were launched in the early 1990s, inflation made the savings almost worthless | But when communism collapsed and market reforms were launched in the early 1990s, inflation made the savings almost worthless |
The move to honour accounts that effectively ceased to exist after the collapse of the Soviet savings bank has proved hugely popular. | The move to honour accounts that effectively ceased to exist after the collapse of the Soviet savings bank has proved hugely popular. |
It has bolstered the approval ratings of new Prime Minister Yulia Tymoshenko - who has earmarked about 6bn hryvnas in this year's budget to redeem some of the savings. | It has bolstered the approval ratings of new Prime Minister Yulia Tymoshenko - who has earmarked about 6bn hryvnas in this year's budget to redeem some of the savings. |
People began queuing last week to secure the money. However, many banks have insufficient cash to cope and chaos ensued around the country. | People began queuing last week to secure the money. However, many banks have insufficient cash to cope and chaos ensued around the country. |
Reports suggest that one bank worker in central Kiev was beaten up by frustrated customers. | Reports suggest that one bank worker in central Kiev was beaten up by frustrated customers. |
Observers say that many thought it best to queue on the first day that payments were set to be made - largely because Ukraine has a history of government decisions being overturned. |
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