SOPOT, Poland–Two weeks after two American CU leaders visited here, a brand-new fund is now operating and collecting donations to support Poland’s credit unions as they work to deliver relief and economic support to the flood of refugees from Ukraine following the Russian invasion and the resulting war and devastation.
In an interview with CUToday.info, Rafal Matsuiak, president of Poland’s CU trade association, the National Association of Co-operative Savings and Credit Unions (NACSCU), shared how Poland’s credit unions, like so much of the nation, have been working to meet a long list of assistance required by those seeking shelter in the country, including housing refugees in CU employees’ homes, while CU branches in the country have acted as distribution points for much-needed supplies, information and financial assistance.
And now a fund is available to help those CUs help the refugees.
In addition, Matsuiak also said Poland’s credit unions have been in touch with some people in Ukraine’s credit unions, which are severely strained and whether they are operating in any way depends on where they are located in the country.
A Joint Effort
The joint effort between a number of people involved in the U.S. credit union community and NASCU led to the creation of the Polish American Credit Union Support (PACUS) account, which was set up in just a matter of weeks.
PACUS was set up in partnership with Poland’s Stefczyk Foundation, under which NACSCU will manage a special sub-account to which payments can be made. The account will be denominated in Polish zlotys, so the funds sent to Poland will be automatically converted.
The fund is separate from the Ukrainian Credit Union Displacement Fund established by the Worldwide Foundation that has raised a half-million dollars to date. it disbursed its first $50,000 to the Podolsk Regional Development Agency, which is a Ukrainian non-governmental organization that is providing humanitarian assistance to some of the more than three-million refugees who have left Ukraine.
In addition to Matsuiak, who is also chairman of the World Council of Credit Unions, also on the call that was set up with assistance from Mitchell Stankovic Associates, a long-time supporter of the international credit union movement, was Brian Branch, the former CEO of the World Council of Credit Unions.
Americans Travel to Poland
As CUToday.info reported here, Branch, volunteering his time and efforts as a private citizen and not as a representative of World Council, and Bruce Foulke, CEO of American Heritage Credit Union in Philadelphia, traveled to Lublin, Poland—just 60 miles from the Ukraine border—to see what would be the best way to provide assistance as the crisis continues to grow.
Branch noted that the refugees he spoke with do not want to rely on relief funds all the time, and they are eager to get into housing and to find jobs. With many men prohibited from leaving Ukraine, most of the refugees have been women and many are mothers of young children eager to get them into school.
A longer “field report” from Branch in which he describes what he saw and experienced first-hand in Poland can be found here.
Out of those discussions between Branch, Foulke and Poland’s credit unions, the Polish American Credit Union Support account was created.
Anguish and Stoicism
One week after returning from Poland, Branch described the experience as similar to “watching the history of 1937 and 1938 again,” a reference to the Nazi invasion of Poland and eastern Europe.
“What you see on people’s faces is the same anguish and the same stoicism,” said Branch. “The inspirational part is how the Poles are committed to receiving with warmth this huge wave of refugees coming into the country. The biggest concern is how are they going to continue to handle that.”
In seeking to establish the new account within the Polish foundation, Matsuiak said the main goal was to find the best way to deliver help from the United States to Poland’s credit union movement and then on to the millions of refugees.
“But we are also in touch with our colleagues in Ukraine and we have also tried to find the best channels, the best ways, to deliver all this help that is needed to them,” Matsuiak said. “There was a lot to do, a lot to talk about.”
Two-Step Objective
Matsuiak said the new fund has a two-step objective.
“The first step is what we need here and now in the short term, and how we can deliver all that is needed very fast,” he said. “We prepared a special agreement between the Polish national association and Stefczyk Foundation. This foundation has existed for many years and is fully operational now. We are trying to open the channel between Poland and the United States to send money to Poland. All this money, 100%, we would like to spend on buying things such as first aid supplies, food, clothes, everything that is needed at the moment.”
The Stefczyk Foundation is covering all administrative costs. Branch said the objective is to get 100% of the funds received put to work on the ground. The account has been set up so it is tax-free in Poland.
‘Constant Contact’ With Ukraine
Matsuiak said Poland’s credit unions have been in “constant communication” with Ukraine’s consulate in Gdansk, Poland related to what is needed.
The second step is longer term, according to Matsuiak.
“We are trying to be active with the whole CU movement in Poland and deliver financial services for refugees from Ukraine,” he explained. “We know what the situation in Ukraine is. And we know all the majority of these refugees are going to spend a lot of time here in Poland. All of these people need to rent a house or an apartment or flat, that they want to get a job. All these people are trying to start a simple, normal life. And, of course, after this war they will be trying to restore their country.
“So, we need to think long-term about using all our resources in credit unions to deliver financial support for all these people,”Matsuiak added.
Near-Equal Citizens
As CUToday.info reported earlier, Poland’s government moved quickly after the war began to take the extraordinary step of providing the refugees with near equal status to Poland’s citizens, providing equal rights and access to the country’s health and insurance systems. Each refugee has been given a unique number that can be used to enter into contracts and set up financial accounts.
Matsuiak stressed the new Polish American Credit Union account will be fully transparent in terms of the money collected and how it is being used.
Branch also noted there have been discussions around creating some type of guarantee fund to cover any potential losses by CUs on loans made to refugees, but that is a separate matter.
‘Something Beautiful’
“I have to say that I get a lot of emails with declarations of help from the United States, and also from Ireland and Brazil,” said Matsuiak. “This is something beautiful and something amazing that in this situation we are a big family and we are together during this dramatic period in our history.”
That dramatic period, of course, has led to challenges for many Ukrainians who have fled when it comes to accessing their savings either before or after they left the country. Matsuiak said the situation is different for each refugee.
“The Ukrainian financial system is not fully operational,” Matsuiak explained. “It’s only operational from time to time and it depends from which city you came. Many Ukrainians are bringing to Poland a lot of cash. Sometimes it’s U.S. dollars, sometimes Euros, but mostly this is Ukrainian hryvnia. The Polish national bank has created a special program and has delivered a special opportunity to change Ukrainian hryvnia to Polish zlotys. If the refugees still have connection with Ukrainian banks, they also can make a wire from Ukraine to a bank here to Poland.”
How Long Can it Continue?
Even with all the fundraising underway and the billions of dollars in aid from the United States, the European Union and others, there is the issue of how long the extraordinary generosity of Poland’s citizens can continue.
“It’s a good question,” said Matsuiak, who spoke to CUToday.info on the same day President Biden was in Poland. “We have big hearts and our doors are still open not only for refugees, but also for guests. But our financial resources are limited. This is normal. I think we are quite close to (the point) where Poland will need financial support. Our government has helped a lot. All Polish citizens have helped a lot. We didn’t create any refugee camps. We just invited all these refugees to our houses. Our government started financial support not only for refugees, but also for Polish families…who have invited every refugees into their homes.”
Poland’s Credit Unions Respond
Among those who have also felt the strain of providing for and assisting the refugees has been the country’s credit unions, which were among the first institutions to take hold in the country after the communist government fell decades ago.
But Matsuiak said the credit unions, known as SKOKs in Poland, and their employees continue to provide support.
“Polish credit unions have been very active from the first days of this war in trying to deliver a lot of help and aid for refugees,” he said. “For example, credit unions have paid for hotel (rooms) where Ukrainian refugees have stayed. We also delivered support to the special reception points in many cities in Poland where the refugees can find food, shelter, clothes, and most of all, information where they can go forward from the reception point. At the national association level, we are cooperating with the Ukrainian consulate and sending many transports of many things that are needed in Ukraine.”
World Council Update
The World Council, which has already disbursed $50,000 in funds to help refugees in Poland, is also offering updates on its activities in the region here.