Ukraine has adopted changes to the law that mean its credit unions no longer need a separate licence to provide payment services, and can now raise funds in foreign currencies.
The bill, signed into law by president Volodymyr Zelenskyy on 6 November, follows months of advocacy efforts by the United States Agency for International Development (USAID) and World Council of Credit Unions (Woccu), which run the Credit for Agriculture Producers (Cap) and Grow Projects in Ukraine. Woccu’s two Ukrainian member credit union associations also took part in the lobbying.
As originally written, the law required credit unions to obtain a separate licence to provide payment services. One of the amendments has abolished this requirement, allowing credit unions to include information about their intention to provide payment services in their original licence agreement.
“We are pleased that the parliament supported the changes that were proposed by representatives of credit unions and experts from the Woccu projects,” said Tetyana Kovbasyuk, chair of the Ukrainian United Credit Union. “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.“
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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 organisations, co-operation and development organisations 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 specialised loan programmes, such as energy efficiency financing for micro and small businesses.
“I especially welcome the permission to raise financing in foreign currencies from international organisations,” said Kovbasyuk. “The Ukrainian United Credit Union has successfully co-operated with many international technical assistance projects, Woccu and the Worldwide Foundation for Credit Unions within the framework of various donor programmes.
“However, as an organisation that is growing and looking for new opportunities for credit unions, we would like to initiate co-operation with international financial institutions to implement targeted credit programmes 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 1 January 1.