Ukrainian agricultural loan reimbursement program launches
The Worldwide Foundation for Credit Unions’ (WFCU) Ukrainian Credit Union Displacement Fund is providing $100,000 in targeted aid to farmers faced with an increasing food security crisis brought on by Russia’s war in Ukraine.
Utilizing an account set up in collaboration with Ridynia, a Ukrainian NGO, the grant dollars from WFCU will go to reimburse at least 585 farmers on 10% of their agricultural loan principal payments. For a farmer to receive the reimbursement, their loan must have been:
- Issued by a credit union that partners with World Council of Credit Unions’ Credit for Agricultural Producers (CAP) Project, a USAID-funded activity.
- Issued by a credit union that is not operating in an active conflict zone.
These types of agricultural loans typically average 50,000 UAH, or the equivalent of US $1,700.
WFCU will monitor the impact of the reimbursement program and convey the outcomes for both individual farmers and the collective program to the Displacement Fund’s 1,500 donors from across the international credit union community.
“In an ever-increasing global food crisis, WFCU is doing its part to support Ukraine’s credit union member farmers who are at ground zero, facing both economic hardship and resource constraints,” said Mike Reuter, Executive Director of Worldwide Foundation for Credit Unions.
This is the second disbursement from the Ukrainian Credit Union Displacement Fund. WFCU in March awarded a $50,000 grant to the Podolian Agency for Regional Development (PARD), a Ukrainian non-governmental organization that is providing humanitarian assistance to hundreds of refugees from Kyiv, Kharkiv, Mariupol, Kherson, Melitopol and other cities who are seeking refuge in the Vinnytsia region of western Ukraine. PARD used part of the WFCU grant to assemble a temporary shelter, and is also working to purchase and deliver food, water, medicine, bedding and other supplies to internally displaced Ukrainians.
Other assistance programs that will utilize the Ukrainian Credit Union Displacement Fund are currently in development to address specific credit union and member pain points caused by Russia’s invasion of Ukraine, which began on February 24.
Since WFCU created and deployed the Displacement Fund on February 27, nearly $1.7 million has been raised from across the international credit union community to support the challenges Ukraine’s credit union system is facing.