News

Conflict in Kiev unleashes run on ATMs

February 21, 2014

Political strife centered in Ukraine's capital Kiev has begun to affect that nation's economy, which is now teetering on the brink of default. And, as with last summer's economic panic in Cyprus, citizens are rushing to ATMs to secure their cash.

A Bloomberg report cited German Gref, head of Russian FI OAO Sberbank, who said the bank was experiencing a run on its ATM locations in Ukraine. Earlier, Standard & Poor's said that without "significantly favorable" improvement in the political crisis, the country risked falling into default.

The conflict has led Russia to put on hold a planned $15 billion bailout amid questions whether Ukraine will be able to repay the debt. S&P slashed the country's credit rating to CCC, which is eight levels below investment grade, Bloomberg said.