Ukrainian Overnight Rates Spike To 20% As Bank Liquidity Fears Soar
Submitted by Tyler Durden on 12/10/2013 08:22 -0500
As opposition party offices are raided and streets continue to fill with protesters, the"precarious" funding sitaution in the nation is beginning to flash red as interbank lending rates spike to 20%. Banks, clearly concerned about their own and each other's liquidity in the face of potential deposit runs (and the accompanying counterparty risk) and huge demand for liquidity. The hryvnia is falling and bond yields are rising but it is the spike in KievPrime overnight rates that is most concerning - and policy-makers have little room to help.