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Russian banks in Crimea to provide loans in month - Central Bank deputy head

April 21, 2014, 23:25 UTC+3 SIMFEROPOL
1 pages in this article

SIMFEROPOL, April 21,  /ITAR-TASS/. Russian banks in Crimea, a former Ukrainian region that recently became part of Russia, will start providing loans in a month’s time, deputy chairman of the Russian Central Bank Mikhail Sukhov said Monday.

“I think in a month banks will start more actively working with individuals not only regarding deposits and currency exchange but also regarding granting of loans,” Sukhov told journalists.

The official said he is convinced the system will develop fast.

“Our banks in Crimea are oriented to complex offices providing modern banking services. They all plan to develop mechanisms of remote work with accounts of individuals and legal entities. Crimea will have the same banks as elsewhere in Russia,” Sukhov emphasized.

As of today, no Russian bank officially operating in Crimea provides loans to individuals in the region.

The Republic of Crimea and Sevastopol, a city with a special status on the Crimean Peninsula, where most residents are Russians, refused to recognize the legitimacy of the new Ukrainian authorities, which had been brought to power amid riots after a coup in Ukraine in February.

Crimea and Sevastopol adopted declarations of independence on March 11. They held a referendum on March 16, in which 96.77 percent of Crimeans and 95.6 percent of Sevastopol voters chose to secede from Ukraine and join the Russian Federation. The voter turnout stood at 83.01 percent in Crimea and 89.5 percent in Sevastopol.

Russian President Vladimir Putin signed the reunification deals March 18. They were subsequently approved by Russia's parliament. On March 21, the Russian president signed the federal constitutional law on establishment of two new constituent members - the Republic of Crimea and the federal city of Sevastopol - in the Russian Federation.

According to the Crimean and Ukrainian statistics bodies, as of early 2014, Crimea had a population of 1,959,000 people; Sevastopol has a population of 384,000 people.

Work to integrate the Crimean Peninsula into Russia’s economic, financial, credit, legal, state power, military conscription and infrastructure systems is actively underway now that Crimea has become part of Russia.

In the Soviet Union, Crimea used to be part of Russia until 1954, when it was gifted to Ukraine by Soviet Communist Party leader Nikita Khrushchev.

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