Presentation of the UKRAINIAN NATIONAL ASSOCIATION OF SAVINGS AND CREDIT UNIONS (UNASCU) Speaker Vera Weissbrodt (Director of international Department UNASCUU)

1
Presentation ofthe UKRAINIAN NATIONAL
ASSOCIATION OF SAVINGS AND CREDIT UNIONS (UNASCU)
SpeakerVera Weissbrodt(Director of
international Department UNASCUU)
2
Cooperative nature of a credit union

• Created to meet the service needs of a distinct
  group of people, united through common bond
• Provides services only to its member who at the
  same time are owners and clients
• Guided by democratic principles of management
  each member has a right of only one vote when
  deciding in governing matters regardless of
  savings or loans
• Founded on non-profit principles services are
  provided at the net cost.

3
Credit union revival in Ukraine began in 1992

• September 20, 1993
• President of Ukraine decreed Temporary
  provisions for credit unions in Ukraine
• June 9 1994
• Ukrainian National Association of Savings
  and Credit Unions was founded
• January 22, 2002
• The Law of Ukraine On Credit Unions was
  approved.
• December, 2002
• Through Decree of the President of Ukraine State
  Commission for regulation of financial services
  markets was created

4
Credit union characteristics

• Legal status non-banking financial institution
• Field of activities provision of savings and
  credit services
• Cooperative nature

5
Ukrainian National Association of Savings and
Credit Unions (UNASCU)

• All-Ukrainian non-profit credit union
  association, which covers the entire territory of
  Ukraine
• Coordinates activity of credit unions - UNASCU
  members
• Provides educational, technical, and
  organizational help to credit unions
• Assists in establishing financial stability of
  the credit unions
• Presents and protects the interests of credit
  unions.

6
Financial requirements claimed by the Law of
Ukraine On credit unions.

• Credit union capital cannot be less than 10 of
  total liabilities
• Loan granted to a borrower shall not exceed 20
  of total capital
• Liabilities of a credit union before its member
  shall not exceed 10 of total CU liabilities
• Total amount of external funds shall not exceed
  50 of total CU assets at the moment such funds
  are obtained.

7
Credit Unions - Member of UNASCUU
28
59
28
18
8
Main UNASCU member CU financial indexes (as of
01.04.2004)

• Members - 300 596 in 134 CUs
• Assets - US 39,4 million
• Loan portfolio - US 36,15 million
• Delinquency level - 4.7
• Capital and reserves - US 7,5 million
• including own capital and reserves US 4,9
  million
• including share capital US 2,6 million
• Savings US 28,55 million

9
???????? ? ????? ? ????????? ?????? ?????? ?????
10
Credit Unions in Ukrain1996 2003, Assets,
Loans and Saving
11
Priority lending purposes

• Consumer loans - more than 50
• Loans for small business support - nearly 25
• Loans for rural producers support - nearly 25

12
Rural lending

• More than 50 of UNASCU member credit unions are
  granting loans to rural producers
• Main purposes obtaining fuels and oils, seeds,
  fertilizers and chemicals, poultries and
  livestock, plants, etc., purchase and repair of
  rural equipment
• Most popular term of lending up to 1year.

13
Ukrainian National Association of Savings and
Credit Unions (UNASCU)

• All-Ukrainian non-profit credit union
  association, which covers the entire territory of
  Ukraine
• Coordinates activity of credit unions - UNASCU
  members
• Provides educational, technical, and
  organizational help to credit unions
• Assists in establishing financial stability of
  the credit unions
• Presents and protects the interests of credit
  unions.

14
CU System of Ukraine is not only UNASCU and its
member credit unions, but also a service
infrastructure that includes

• Service Center of UNASCU
• Credit Union Training Center of UNASCU
• Information and Consulting Service
• Central Credit Union of UNASCU.

15
Central (United) credit union

• Registered on February 25, 2003
• 47 UNASCU member CUs became members of CCU of
  UNASCU
• Activities started since June 1, 2003
• Currently assets of CCU equal to US 441
  thousand
• Since June 1, 2003 65 loans granted for a total
  amount of US 950 thousand
• Capital growth to US 359 thousand