Crimean Bank Run Accelerates

Crimean Banks Run Out of Cash Ahead of Referendum

Uncertainties stemming from a possible break up from Ukraine have prompted people in Crimea to queue outside banks to withdraw their money ahead of this weekend's referendum to join Russia.
Rumours about a looming legal vacuum are spreading in the crisis-hit region, causing panic, confusion and fear among people, Associated Press reported.
Details on how the financial system will work if Crimea decides to join Russia were sketchy, but officials hinted that the region plans to use the Russian rouble alongside the Ukrainian hryvnia "for a period of time".
There was also a report that all savings accounts were being frozen and withdrawals were being limited to just 300 hryvnia (€23, $32, £19) per day. The pro-Kremlin authorities in Crimea dismissed the report saying it as a "provocation".
The officials tried to calm down people saying there will be no problem with pensions or salaries and that the banks have sufficient cash for everyone.
Banks in Crimea have set up a daily cash withdrawal limit of 1,500, and people have queued up day after day to take out money in instalments.
Due to the rush, many cash machines are out order, while banks are not receiving enough bank notes to pay customers. Ukraine's central bank governor Stepan Kubiv said the security situation had restricted movements of cash and "we cannot ensure the transportation of cash even within Crimea".