The State Savings Bank of Ukraine (Oschadbank, Kyiv), which is the government's agent for paying defaulted deposits of Soviet-era depositors, is planning to put compensation funds on local three-year payment cards, Oschadbank Board Chairman Serhiy Podrezov has said.
"We’ve decided that cards will be convenient in all cases: today this is the only proper decision," he said.
As reported, Ukrainian President Viktor Yanukovych in March 2012 announced new social initiatives, including an increase in pensions to some categories of pensioners and the payment of Hr 1,000 in the form of compensation of losses of former Soviet rate depositors.
Podrezov said that the issue of long-term payment cards to send compensation will help make an instrument for similar payments in the future: this will reduce the number of visits to the bank by clients.
He said that Oschadbank decided not to issue cards of international payment systems so not to pay fees.
The banker also said that the local card issued by Oschadbank will be serviced in its own branch chain and in chains of trade partners of the bank. It is expected that the Auchan, pharmaceutical chains and Technopolis chain will become trade partners of the bank.
"We have the average age indicator [for depositors] in the base 67-68 years old… The main consumer basket is a pharmacy, a market and food," he said, commenting on the principle of the formation of retail companies that will be bank’s partners.
He added that the bank would offer the possibility to participate in a special deposit program with increased interest rates for its clients.
Podrezov also said that taking into account the advanced age of many recipients, the bank understands the importance of preventing queues: information on dates and conditions of personal updating of information and obtaining the card with funds accrued is possible via the bank’s Web site or a call center where 500 people work now.
"In three or four minutes one can call [to the center] and obtain the information," he said.
He said that the updating of information on depositors started today (around 15,000 calls were processed) and payments will be commenced in June. During the payment period, all branches of the bank with property communications channels (3,500 departments) and 7,000 employees will be involved.
The banker expressed confidence that the payment of compensation to depositors would not lead to significant inflation.
"The task to pay those who did not receive funds and was registered [in the previous lists] was set… This is around six million people and around Hr 6 million. Hr 1 billion a month during six months… Hr 1 billion will not cause any inflation in the economy," he said.
