Azarov intends on compensating lost Soviet bank deposits in 2013

Deposits lost from the collapse of the Soviet Savings Bank will be compensated in 2013, Prime Minister of Ukraine Mykola Azarov said on Dec. 26. In 2012, the government reportedly spent UAH 4.5 bln on such compensation.

Alexander Paraschiy: The approved state budget for 2013 does not stipulate any funds for this compensation.  And even in its current shape, the budget will be hardly applauded by the IMF. Any new populist spending only makes the critical IMF deal less probable. In this respect, we see this message as a PR maneuver targeting the Ukrainian public without real changes to the spending plan. Unlike in 2012, when the compensation had a political incentive with the October elections, there is no critical need for the government to resume this spending.