Presentation ofthe UKRAINIAN NATIONAL ASSOCIATION OF SAVINGS AND CREDIT UNIONS (UNASCU)

SpeakerVera Weissbrodt(Director of international Department UNASCUU)

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.

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

Credit union characteristics

• Legal status – non-banking financial institution;

• Field of activities – provision of savings and credit services;

• Cooperative nature

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.

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.

Credit Unions - Member of UNASCUU

59 2828

18

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;

Членство в НАКСУ и кредитных союзах – членах НАКСУMembership Growth of UNASCU member credit unions

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Credit Unions in Ukrain1996 – 2003, Assets, Loans and Saving

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Priority lending purposes:• Consumer loans - more than 50%;

• Loans for small business support - nearly 25%;

• Loans for rural producers support - nearly 25%

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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.

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.

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.

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