President Zelenskyy Signs Amendments to Ukraine’s Law on Credit Unions
WOCCU advocacy efforts result in changes that streamline licensing for credit union payment services, expand foreign currency funding options for united credit unions
Months of advocacy efforts by the United States Agency for International Development (USAID) and World Council of Credit Unions’ (WOCCU) Credit for Agriculture Producers (CAP) and GROW Projects in Ukraine, and WOCCU’s two Ukrainian member credit union associations, resulted in President Volodymyr Zelenskyy signing amendments to Ukraine’s Law on Credit Unions that eliminate the need for credit unions to obtain a separate license to provide payment services and allow united credit unions to raise funds in foreign currencies.
Zelenskyy on November 6 signed Bill No. 11043, “On Amendments to Certain Legislative Acts of Ukraine Regarding the Improvement of the National Bank of Ukraine’s Functions for State Regulation of Financial Services Markets”.
As originally written, the law required credit unions to obtain a separate license to provide payment services. One of the recent amendments abolished that requirement, allowing credit unions to include information about their intention to provide payment services in their original license agreement.
“We are pleased that the Parliament supported the changes that were proposed by representatives of credit unions and experts from the WOCCU projects. In our opinion, simplifying the procedure for obtaining permission to provide payment services can give a boost to credit unions, primarily large ones, in developing an additional service for their members,” said Tetyana Kovbasyuk, Chairwoman of the Board of the Ukrainian United Credit Union.
Another amendment allows united credit unions, which function as central financing facilities for credit unions in Ukraine, to raise funds in foreign currencies from other countries, financial organizations, cooperation and development organizations and technical assistance projects.
This change was driven by advocacy efforts of the USAID CAP Project, which ended in September 2024, and the USAID GROW Project, which launched that same month. Both projects have been instrumental in supporting Ukrainian credit unions, which they believe can become reliable intermediaries in the implementation of specialized loan programs, such as energy efficiency financing for micro and small businesses.
“I especially welcome the permission to raise financing in foreign currencies from international organizations,” said Kovbasyuk. “The Ukrainian United Credit Union has successfully cooperated with many international technical assistance projects, World Council of Credit Unions and Worldwide Foundation for Credit Unions within the framework of various donor programs. However, as an organization that is growing and looking for new opportunities for credit unions, we would like to initiate cooperation with international financial institutions to implement targeted credit programs through partner credit unions.”
Since the start of the CAP Project in 2016, project leaders and WOCCU International Advocacy professionals developed and advocated for the adoption of a new Ukraine Law on Credit Unions, which came into effect on January 1, 2024.
WOCCU and the GROW Project remain committed to supporting the ongoing development of the country's credit union law by sharing global best practices in credit union operations and regulations.