Ukrainian Credit Unions Receive Second Tranche of $1 Million to Resume Agricultural Lending in Wartime
Joint USAID/Worldwide Foundation for Credit Unions initiative to help partner credit unions meet financing demands of agricultural producers
April 12, 2022
MADISON, Wis.—USAID and Worldwide Foundation for Credit Unions released the second and final disbursement from a $1 million liquidity fund to help partner credit unions affiliated with World Council of Credit Unions’ (WOCCU) Credit for Agriculture Producers (CAP) Project resume agricultural lending and support food security in wartime Ukraine.
The second tranche of nearly $500,000 was disbursed to the Ukrainian United Credit Union (UUCU) and United Credit Union of UNASCU (UCU of UNASCU), the central financing facilities for Ukrainian credit unions. UUCU, UCU of UNASCU and the Worldwide Foundation, WOCCU’s charitable and engagement arm, signed agreements related to the liquidity fund in April 2021, with the first disbursement of nearly $500,000 released soon afterwards.
At the outset of the war with Russia, many credit unions working with agricultural and rural micro-, small- and medium-sized enterprises temporarily suspended their lending activities due to the uncertainty and high risk to both the institutions and their borrowers. But in order to ensure food security, agricultural producers in areas of western Ukraine less affected by the war began to express a demand for new loans.
The demand for agribusiness loans exceeds the supply—a trend that is expected to continue due to economic impacts caused by Russia’s invasion of Ukraine. This second tranche of funding will help close that gap and contribute to the food security of Ukraine and the world, given Ukraine’s key role in global agricultural production.
The Worldwide Foundation is the fundraising and engagement arm of the World Council. Join us on a global journey to transform a billion lives worldwide using credit unions. Visit www.doglobalgood.org to start your journey today.
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 90 countries. Worldwide, 86,451 credit unions in 118 countries serve 375 million people. Learn more about World Council's impact around the world at www.woccu.org.