Supporting Ukrainians Through Credit Unions
Since 2017, World Council of Credit Unions has been in Ukraine, working its Credit for Agriculture Producers (CAP) in Ukraine. Obviously, that project has been stymied this year following the unlawful and heinous Russian invasion of Ukraine.
Credit unions, through the Worldwide Foundation for Credit Unions have raised nearly $500K to support Ukrainian credit unions, employees and their members, but more is desperately needed. Several credit unions’ have lost their physical locations due to the war, and citizens need the basics like food, water and electricity. You can hear from a Ukrainian credit union liaison on the ground exactly what is going on and the perils of trying to continue serving members, from internet and electricity instability to looting. Listen to "Aleksandr’s" report here.
Donate safely to the Ukrainian CU Displacement Fund here.
Credit unions that can are persevering in the war-torn country. The CAP Project successfully advocated before the National Bank of Ukraine for regulatory relief during wartime. According to WOCCU, these credit unions now can spend less time on compliance and reports and focus staff on helping members.
One credit union in Chernihiv Oblast, under heavy attack from Russia, has coordinated with local agricultural producers and their communities to ensure the fair distribution of stored food and supplies, WOCCU reported. Another in Kherson Oblast, which is under Russian control, recently resumed its operations. Yet another has resumed lending operations and agricultural financing activities despite the political and military uncertainty.
U.S. CU Execs Travel to Poland
Credit union employees in Poland have taken in refugees, while the credit unions have been collecting aid and even buying ambulances, according to CUToday reporting.
Sue Mitchell, head of Mitchell, Stankovic and Associates and a global credit union activist, was quoted in CUToday as writing in search of support for the initiative, “Many of us know these credit union people. They are friends. They have a strong credit union system. They welcomed us into Gdansk. We started (Global Women Leadership Network) sister societies together. We did a field engagement in Kiev and Liev! This is personal to many of us! We need to Stand Up!”
American Heritage FCU in Pennsylvania sponsored a trip for CEO Bruce Foulke and retired WOCCU CEO Brian Branch to travel to Poland to see how the global credit union movement can assist the co-ops in Poland and Ukraine to help the refugees. Rafal Matusiak, president of the National Association of Cooperative Savings and Credit Unions (NACSCU) and chair of World Council of Credit Unions, joined to help with translation.
“I met a young woman today who is 22 years old. She had come here for college, and then the Russians attacked,” Foulke told CUToday. “She’s worried about her parents, who are elderly. What is she doing? She’s arming herself to go get her parents out. That’s surreal.” He added he is committed to helping people and not just talking, and he has the full support of his board.
According to Branch, who’s worked through many refugee crises during his decades working with credit unions, it follows a pattern:
1st wave: higher income and have assets
2nd wave: less wealthy and in greater need of assistance
3rd wave: those who are elderly or have health challenges
Branch said the Polish credit unions, known as SKOKs, and those in Ukraine are uniquely positioned to help in the short term and the long term.
Donate safely to the Ukrainian CU Displacement Fund here.
Credit unions are a global movement, and one of the cooperative principles we uphold is cooperatives helping other cooperatives. Our current scenario is one of the many credit unions were built for.
What Your U.S. Credit Union Can Do at Home
Millions have fled Ukraine with more flooding over its neighboring countries’ borders every minute. The U.S. recently announced the country will accept up to 100,000 refugees from Ukraine. Nearly 1 million Ukrainians live in the U.S. (more than 15% of those are in the NY-NJ metro area), and they’re eager to bring family over to live with them. There are also large pockets of Ukrainians around LA, Chicago and the Baltimore/DC area.
The images of the war on the news can seem surreal because it’s so far from our existence in the U.S., but many are dealing with it every day right here at home.
If you’re a credit union in these areas – or any credit union – perhaps there are things you can do aside from making financial contributions.
Some Ideas Into Action:
Low- or no-cost personal loans to fund travel of refugees to U.S.
Credit card travel rewards donations
Low- or no-cost small dollar ‘allowances’ for additional expenses associated with taking in refugees, like increased electricity, grocery, etc. bills
Low- or no-cost international wire transfers to refugees
In addition, your members are feeling the indirect impact of the war, from increasing fuel costs to a higher tab at the supermarket.
Some More Ideas Into Action:
Cash, grocery and gas rewards on credit cards
Limited-time discounts on loan payments equal to inflation that month
Several small-dollar gift card giveaways for items in need
Partner with mass transit, grocery stores, etc. for discounts
These hit on the topics all Americans are talking about around the dinner table, so provide the solutions they want. I’m sure you all can be more creative than me, so please post and share your ideas at the bottom of this article! Our shared brilliance can only help more people!
Long-Term Recovery in Ukraine
Contributions to the Displacement fund, WOCCU said, will go toward the biggest needs for recovery and rebuilding in concert with Ukrainian and other regional credit unions and partners. WOCCU wrote in a statement, “WOCCU anticipates there will be a demand for re-establishing a prudent regulatory and operating environment that will allow credit unions to focus on individual needs, support of small and medium enterprises (SMEs) and agricultural lending designed to help in the economic recovery of the Ukrainian people.”
Additionally, the need for the Credit for Agriculture Producers (CAP) Project in Ukraine is funded through March 2023 and will be even more meaningful. CAP’s objective is to strengthen the Ukrainian credit union market, thereby expanding access to agricultural credit. As of the end its 4th year activities, its partners extended 14,208 agricultural loans, surpassing CAP’s goal of 10,000 new loans. Building upon the progress made to date, CAP will continue to support the improvement of legal, regulatory, and market environment for credit unions and help build the capacity of the credit union sector.
