The U.S Agency for International Development (USAID) approved an extension of World Council of Credit Unions 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); and
• 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:

1. Improving the market and regulatory environment for credit unions;
2. Helping national credit union associations offer improved services to credit unions;
3. Seeking additional sources of liquidity for credit unions; and
4. Helping credit unions expand their agriculture finance portfolios.

The CAP Project will partner with the National Association of Co-operative Savings and Credit Unions, Poland’s national credit union association, to support development of a credit union liquidity fund in Ukraine. In addition, World Council's Global Women’s Leadership Network 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 World Council President/CEO Brian Branch.