CAP Project Expansion Will Increase Credit Union Lending for Small Farmers, Support New Regulatory Framework in Ukraine
WOCCU Credit for Agriculture Producers (CAP) Project extended into 2023
August 20, 2020
MADISON, Wis.—The United States Agency for International Development (USAID) approved in August an extension of World Council of Credit Unions’ (WOCCU) Credit for Agriculture Producers (CAP) Project in Ukraine through March 2023.
The extension will allow the CAP Project to continue improving the regulatory environment for credit unions in Ukraine, extending more credit union loans to the country’s farmers and agribusinesses—and working with credit unions to improve their liquidity.
Originally established in 2016, the CAP Project has expanded access to agricultural credit by:
- supporting Ukraine’s credit union associations to better advocate for credit union interests with the national regulator and to better serve their member institutions.
- working directly with a group of 23 credit unions to build their capacity to extend more than 10,000 loans to rural and agricultural micro, small and medium enterprises (MSMEs).
- supporting the development of new financial regulations for the credit union sector, which were approved in December 2019 and implemented in March 2020.
The new regulations, as well as the transfer of credit union supervision to the National Bank of Ukraine as of July 1, 2020, is setting the stage for improved safety and soundness in the country’s credit union market, building a foundation for long-term growth and increased access to finance.
Revised project goals
Building on that progress, the CAP Project will continue to help grow the capacity of Ukraine’s credit union sector by pursuing the following four objectives:
- Improving the market and regulatory environment for credit unions;
- Helping national credit union associations offer improved services to credit unions;
- Seeking additional sources of liquidity for credit unions; and
- Helping credit unions expand their agriculture finance portfolios.
The CAP Project will partner with the National Association of Co-operative Savings and Credit Unions (NACSCU), Poland’s national credit union association, to support development of a credit union liquidity fund in Ukraine. In addition, WOCCU’s Global Women’s Leadership Network (GWLN) will assist in implementing a gender-lens methodology for all four of the CAP Project’s objectives.
“We are thrilled to continue our work in Ukraine. The nation’s credit union system is much stronger than it was when the CAP Project began in 2016. By continuing our work to build and strengthen credit union capacity, provide more loans to the country’s growing agricultural sector, I have no doubt Ukraine’s credit union movement will continue to head in positive direction,” said WOCCU President and CEO Brian Branch.
This document was produced for review by the United States Agency for International Development. It was prepared by WOCCU for the USAID/Credit for Agriculture Producers (CAP) Project in Ukraine, agreement number AID-121-LA-16-00002.
World Council of Credit Unions is the global trade association and development platform for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.
World Council has implemented 300+ technical assistance programs in 89 countries. Worldwide, 85,400 credit unions in 118 countries serve 274 million people. Learn more about World Council's impact around the world at www.woccu.org.