WASHINGTON–The United States Agency for International Development (USAID) said it is launched a new “GROW Project” to expand credit union business lending in Ukraine to support economic growth and the creation of jobs, even as that country remains under attack from Russia.
USAID said the new program will expand access to “urgently needed finance” among small and medium Ukrainian businesses.
“Through a partnership with the World Council of Credit Unions, USAID will expand its support to credit unions in Ukraine, enabling them to provide more lending to firms and individual entrepreneurs through an initial $5 million investment in the new GROW Project, a four-year initiative that begins operation this month,” the agency said.
What Project Will Do
According to USAID, the GROW Project will expand access to finance through credit unions for individuals seeking to start a business and for existing businesses looking to expand their operations, including micro, medium and small enterprises, cooperatives, and farms in rural areas of the country.
“To maximize the impact of USAID funds, GROW will increase access to financing for a range of potential borrowers; improve the enabling environment for credit union operations; expand the capacity of credit unions to provide and promote their financial services; and, address the specific challenges of women and other vulnerable populations in securing financing for business development,” USAID said. “The project will work closely with credit unions in Ukraine to develop processes, products, and partnerships that maximize credit union reach and positively impact local communities and economies.”
The Long-Term Priority
GROW will also support Ukraine’s long-term priority for further integration and accession into the European Union (EU). As the regulatory environment governing credit unions shifts to “align with the EU, GROW will work to help the credit unions adapt and thrive,” USAID added.