LVIV, Ukraine (April 15, 2015) -- World Council of Credit Unions' board of directors recently met with leaders of its member organization, Ukrainian National Association of Savings and Credit Unions (UNASCU), in Lviv, Ukraine, to better understand challenges facing the nation's credit unions.
"Since 1992, World Council has worked to grow and strengthen Ukraine's credit union system," said Brian Branch, World Council President and CEO. "Despite various challenges, we have come a long way and will continue to provide support."
UNASCU President Petro Kozynets and CEO and General Manager Ludmila Kravchenko explained how current issues, including political conflict, shifting regulatory and accounting requirements, shortage of liquidity, declining growth and low consumer awareness, have impacted credit unions' ability to serve their members.
"Naturally credit unions have much more trust than the banks, so there is an opportunity for their expansion," Kozynets said. "Yet, [the] overall situation very much depends on when the war is over."
The immediate goal of the movement is to find new sources of funds. Credit unions and UNASCU look for external borrowings to meet the demand for credit. Another priority is the legislative and regulatory framework for credit unions.
A series of financial and political crises, including recent conflict with Russia, have significantly impacted working families and the credit union footprint. Over the past six years, a combination of political situation, a threefold devaluation of the Ukrainian currency and uncertainty has led to the loss of 1.7 million credit union members and over 70% of assets. Nevertheless, credit unions remain optimistic about their role to help people in a context where banks are cutting down their activities.
To learn more about issues affecting the local sector, the World Council delegation also visited Anisia Credit Union, founded by representatives of the Ukrainian Orthodox Church in Lviv.
Ukrainian credit unions are most prevalent in provincial cities and rural areas. They remain relatively small, with total assets of US$197 million, and respond to the common person's demands for consumer finance, appliances and education. Ukrainian credit unions finance self-employment and small businesses. They are often the only institutions financing small farmers in rural villages.
The Ukrainian government is working with credit unions to develop sounder regulatory systems and to continue financing agriculture. World Council continues discussions with the Polish credit union movement and USAID for larger, credit union-focused programs. Read about Brian Branch's visit last year to Ukraine here.
World Council of Credit Unions is the global trade association and development agency 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 more than 290 technical assistance programs in 71 countries. Worldwide, 57,000 credit unions in 103 countries serve 208 million people. Learn more about World Council's impact around the world at www.woccu.org.