Ukraine pledges to protect deposits

Ukraine is weighing measures to stem cash withdrawals after seven percent of deposits were taken from banks during last week's bloody uprising, underscoring the need for action to fend off a default.

Withdrawals peaked with 30 billion hryvnias ($3.1 billion) withdrawn between February 18-20 as police and anti- government demonstrators fought in the center of Kiev, Natsionalnyi Bank Ukrainy Governor Stepan Kubiv, 51, said in his first interview since being appointed on February 24.

The interim administration is trying to secure as much as $35 billion in financial aid to fend off a possible default.

Acting President Oleksandr Turchynov said that a new administration should be formed quickly.

"Ukraine's economy needs rescue and that adds pressure on the revolutionary political forces to create a truly national unity government," said senior economist at IHS Global Insight in London, Lilit Gevorgyan by e-mail.

"The large bailout plan that Ukraine seeks won't be handed out by international donors to a weak and non-inclusive government," he said. Outflows from banks slowed in western and central Ukraine and Kiev as European foreign ministers last week negotiated a pact to end the violence, Kubiv said near the Central Bank, about 500 metres (1,641 feet) from the main protest venue, Independence Square.

- Bloomberg