Banking in Ukraine

[Harrydubois]

I am curious to ask about something. I live in New York. Let's say I come to Kiev to teach for a year. Let's say I bring along $3,000 cash. Plus I get paid for teaching, I guess in Ukrainian money. What do I do with the money?

I have heard that Bank Aval is good. Can I deposit money in there, have it kept in dollars, use a debit card to make online purchases in dollars or to make cash withdrawls (in Ukrainian money) from ATMs??

[Gator]

Don't worry about saving money.  You will spend everything on prostitutes.

[Hammer2722]

Don't worry about saving money.  You will spend everything on prostitutes.

 
 

[Harrydubois]

That's shows how little you know about me. When they see my "package" girls usually pay me. That's why I need a good bank.

[Patagonie]

I am curious to ask about something. I live in New York. Let's say I come to Kiev to teach for a year. Let's say I bring along $3,000 cash. Plus I get paid for teaching, I guess in Ukrainian money. What do I do with the money?

I have heard that Bank Aval is good. Can I deposit money in there, have it kept in dollars, use a debit card to make online purchases in dollars or to make cash withdrawls (in Ukrainian money) from ATMs??

I don't think that you will need to deposit anything on a bank. If you date  women and rent a flat you will expense your 3000$ in 3 weeks or 4 weeks, i hope that you can start teaching since the first day, otherwise you would have to go to the bank.... to borrow some money.

[Harrydubois]

No really what's the deal with Bank Aval. I need an account in US dollars with a Visa debit card.

[simila]

Hi Harry,
Sorry for the stupid previous comments , somebody left the cage door open at the zoo !

The best banks in Ukraine are ; Bank of Cyprus and Unicredit Bank.
I have accounts at Cyprus Bank , they are very helpful , and speak English.
To open an account you will need either an ID Tax number , or at least a copy of your apartment rental agreement from your landlord.
A friend of mine has an account at Unicredit , the story is the same there.

Accounts in Euros , Dollars or Grevna's are fine and not a problem.

Good Luck.   

[Manny]

People are pulling out of the Bank of Cyprus across Europe. They are too close to the Greek crisis and badly affected by it. Also, Cyprus is in crisis:  http://www.nytimes.com/2012/06/13/business/global/cyprus-explores-a-bailout.html

Personally, I wouldn't put a dime in the Bank of Cyprus right now. Especially in Ukraine where they are beyond EU regulation. They are likely to go the way of Landsbanki Guernsey. An Icelandic bank 'guaranteed' by the Icelandic government. That guarantee was worth $0 in the end. The Icelandic government reneged and hid behind their courts.

Swedbank, the most trusted bank in the Baltics, and a big player in Sweden, is pulling out of Ukraine: http://www.swedbank.ua/

There is a Russian Sberbank in Ukraine, if I had to bank there, I would use them. http://sberbank.ua/ - Russia understands Ukraine. Sweden and Cyprus don't.

[simila]

Hi Manny,
I see you are in Estonia , what good international Banks are performing well there and are a very safe place at the moment ?
Can you show evidence of ''People all over Europe Pulling out of Bank of Cyprus'' please , as I would be very interested in seeing this proof.

I thought the original question was about a guy opening a usable current account of a few hundred Dollars , not him making a sizeable investment ?
As your June 12th 2012 linked reported link states , ''no formal request has been made'' , and this is still the case.
In the past 12 months , Bank of Cyprus has open many new branches in cities all over Ukraine. They are expanding. There are now 6 new branches of the Bank of Cyprus in Kharkov. Yes I know that they are not governed under EU law in Ukraine , but no one is in reality. This works the other way , because if a Ukrainian opens a Bank account in Cyprus , rather than lets say Privitbank , then they are not governed under Ukraine law. So this works to many peoples advantage.
I would much rather recommend this guy to open a usable current account with Bank of Cyprus or Unicredit , than with many other banks that i see in Ukraine.
I have businesses in both Ukraine and Cyprus and live in both Countries , with many accounts of different currencies in both.  As for Estonia , where you are , sorry i have no experience of that , so cant comment.

[JayH]

Why not use your US account-- draw money as you need it.You can do thru various banks and ATMs.Otherwise open account at Privat Bank in Ukraine.You can open UAH (grv) and/or US $ accounts.

[Manny]

Hi Manny,
I see you are in Estonia , what good international Banks are performing well there and are a very safe place at the moment ?

Swedbank is the best regarded bank in Estonia.

Can you show evidence of ''People all over Europe Pulling out of Bank of Cyprus'' please , as I would be very interested in seeing this proof.

Its pretty well known really that as Cyprus is so close to Greece, and insolvent itself, and may end up dumping the Euro, and the government don't have the money to honour bank guarantees (why Bank of Cyprus has to come under the UK umbrella in the UK and have ringfenced funds) - if you think that makes for a safe institution, go right ahead.

In the past 12 months , Bank of Cyprus has open many new branches in cities all over Ukraine. They are expanding. There are now 6 new branches of the Bank of Cyprus in Kharkov.

Do you think lack of regulation might be fuelling that? Ask yourself why a reliable bank like Swedbank is withdrawing and a bank from an insolvent country is piling in?

[simila]

" Ask yourself why a reliable bank like Swedbank is withdrawing and a bank from an insolvent country is piling in? "

Insolvent Country ? .....what countries in EU are solvent !!!!!
Ha Ha

[Manny]

Insolvent Country ? .....what countries in EU are solvent !!!!!
Ha Ha

Well, Estonia for a start. Try this: http://www.cnbc.com/id/47691090/Estonia_Uses_the_Euro_and_the_Economy_is_Booming

 

[calmissile]

On my most recent trip to Ukraine (ending in Oct 2012), there are some changes I noticed to banking.

FWIW....
The ATM machines no longer offer withdrawals in US $$,  only grivna.  Even though some machines still show the dollar option, the selection not longer works.

I was able to withdraw dollars by going into the bank and using my debit card.  You are required to show your passport and it appears that the clerk does a computer check on your passport info in their database.

It is also necessary to go into a bank, show your passport in order to convert US dollars to grivna.  This is not a change.

In order to convert grivna back into US dollars when you leave, it may be necessary to provide a form that the bank gave you when you converted dollars into grivna.  This was explained as a recent change to Ukrianian banking law.  Be sure to ask for and keep the form the bank gives you, it may be necessary when you want to convert grivna back into US dollars.

[Anotherkiwi]

On my most recent trip to Ukraine (ending in Oct 2012), there are some changes I noticed to banking.

FWIW....
The ATM machines no longer offer withdrawals in US $$,  only grivna.  Even though some machines still show the dollar option, the selection no longer works...

Sorry Doug, but I don't understand this.  If you're in Ukraine, buying things or paying for an apartment rental, or anything else, why would you want to withdraw US dollars in the first place?  Whatever country you're in, surely you pay in the local currency?  I never used Pesetas in France, or Swedish Kroner in the Solomon Islands, or Roubles in Australia.

[ML]

Surprised to hear you say this Kiwi.
Many landlords in Ukraine insist on USD for payment.

[Anotherkiwi]

Surprised to hear you say this Kiwi.
Many landlords in Ukraine insist on USD for payment.

Maybe I've dealt with a better class more trusting group of landlords! 
 
I've paid on-line for apartments in USD, but I've never physically paid anybody for anything in either Russia or Ukraine in USD.  In fact, I only took about 100 USD in cash on my first trip, and none at all on the second.

[Doll]

I couldn't get dollars from ATM in Russia either. But other than that- I used my debit card in many stores.

[CDW]

I'm sorry that I am not expert on banking.  However, like Gator, I am expert in prostitutes.  If you want to find a prostitute, let me know as I want to be better pimp than Gator!!

[calmissile]

Sorry Doug, but I don't understand this.  If you're in Ukraine, buying things or paying for an apartment rental, or anything else, why would you want to withdraw US dollars in the first place?  Whatever country you're in, surely you pay in the local currency?  I never used Pesetas in France, or Swedish Kroner in the Solomon Islands, or Roubles in Australia.

Because some people want US dollars rather than grivnas.  In my case I had a business translaction with a private person that we had agreed to do in dollars.  It did not matter to me.

Also,  I paid my apartments in dollars because that is what was requested.  I had no reason to argue.

[JayH]

Surprised to hear you say this Kiwi.
Many landlords in Ukraine insist on USD for payment.

I have never used a USD for anything other than exchange at bank.Never asked for it either.Maybe you are so overtly American that you get asked?

[simila]

Guys , as an apartment company owner in Ukraine , I would advise you to bring US $ or Euros when you come to visit .
The Grevna will be devalued this year and I would much rather take a proper currency than the local one !
I always give the current daily exchange rate , as I'm sure many other apartments owners will also offer you.
Try to steer away from agencies that are linked to the dating sites , as you will always get over charged.
When using an ATM , pick the 24 hour ones that are inside the Bank entrance halls , just as Unicredit and Bank of Cyprus. Don't use the ones in the street.
It is only possible to get Grevna from ATM.
Most of my customers bring over cash , as the saying goes "CASH IS KING"

[calmissile]

Guys , as an apartment company owner in Ukraine , I would advise you to bring US $ or Euros when you come to visit .
The Grevna will be devalued this year and I would much rather take a proper currency than the local one !
I always give the current daily exchange rate , as I'm sure many other apartments owners will also offer you.
Try to steer away from agencies that are linked to the dating sites , as you will always get over charged.
When using an ATM , pick the 24 hour ones that are inside the Bank entrance halls , just as Unicredit and Bank of Cyprus. Don't use the ones in the street.
It is only possible to get Grevna from ATM.
Most of my customers bring over cash , as the saying goes "CASH IS KING"

That was my experience also.  I did not know why they wanted dollars, but it did not matter.  The rates I got were great.  The other bank I really like is Privatebank.  They have machines everywhere and the exchange rate is accurate.

[GQBlues]

Guys , as an apartment company owner in Ukraine , I would advise you to bring US $ or Euros when you come to visit ....

Every single time I reserved and taken an apartment rental in Russia (never Ukraine), I've always paid the landlords in USD as this was the currency quoted at time of rental. I've come to know a few of them in time and it was never part of the negotiation. If they can generate additional income by a higher conversion rate elsewhere ~ more power to them. Whatever the cause of preference may be, matters very little to me. I paid for the services rendered as quoted.

Incidentally, wifey has been back home in Siberia for a couple of weeks now (yes, she voted before leaving) and there was one time when she said she attempted to use a CC for a purchase. She said the merchant asked for her to 'enter' her PIN for the purchase. She paused, thought it over and decided not to make the purchase as it struck her strange why the PIN was necessary for the transaction. I agree.

Is this the new normal in FSU?

[Noch1]

If your CC has a pin, yes it is normal.

If you are only taking 3000US, why bother with a, bank?
Take some in cash. with go to machine as needed.
for that amount of money, the rates to withdrawal are not that big.
Compared to, the hassle setting up bank account, that you are not sure you can trust.