NBU bans banks from payment of dividends to stockholders

Wednesday, September 24, 2014 - 11:33 (EEST) Section: Latest news

The National Bank of Ukraine bans banks from payment of dividends to stockholders since September 23.
National Bank governor Valeria Hontareva said on air of the Fifth Channel.
“Panic moods really form excessive demand. At the same time, this excessive demand is formed both on the cash market of the population, in the same way this excessive demand starts to be formed by representatives of business circles. For instance, since today, the National Bank temporarily banned, for the time of combat actions in the country, for a short period, we banned, in particular, payment of dividends. Payment of dividends is an absolutely legal transaction, but at the time, when demand is accelerated, both from population and business, when earlier dividends were invested in business, today business wants to withdraw dividends,” Hontareva said, quoted by Apostrof.
She noted that withdrawal of money through the sale of securities is also limited, except for state securities. The HBU governor explained that those bans are caused by panic moods, which may lead to a great outflow of deposits. At the same time, Hontareva stressed that this was a joint decision with commercial banks.