KIEV, Ukraine–After initially being told they would remain closed through April 24, credit unions in Ukraine have reopened with a provision they provide personal protective equipment to employees and members.
The reopening of the country’s CUs followed a joint advocacy effort that saw cooperation between World Council’s Credit for Agriculture Producers’ (CAP) Project team, the Ukrainian National Association of Savings and Credit Unions(UNASCU) and All-Ukrainian Association of Credit Unions (AUACU), as well as the national regulator and other stakeholders, according to the World Council.
As CUToday.info reported earlier, the Cabinet of Ministers of Ukraine (CMU) had announced it was shuttering all CUs along with other non-bank financial institutions and service providers until April 24 in response to the COVID-19 pandemic.
“The shutdown was having a negative impact on credit union performance and credit union members, most of whom were not financially prepared for such a shutdown,” the World Council said. “Credit unions in Ukraine cannot operate remotely because they do not offer online services.”
In response to the closure announcement, WOCCU said its CAP Project team and its member associations launched their advocacy campaign to support credit unions by urging amendments be added to the CMU’s original resolution that would allow credit unions to reopen.
‘Close Cooperation’
The National Commission for the State Regulation of Financial Services Markets, which currently regulates credit unions, the National Bank of Ukraine (NBU), which will serve as the regulator beginning July 1, and the Committee of the Verkhovna Rada of Ukraine on Finance, Tax and Customs Policy also stepped in and sent letters to the CMU, according to WOCCU.
“They all also suggested amendments to the CMU’s original resolution that would effectively lift the ban on credit unions,” WOCCU said. “Close cooperation and fruitful interaction between all stakeholders resulted in the CMU lifting the ban on April 2.”
According to WOCCU, in CMU Resolution #225, the government allowed the provision of financial services, as well as permitted financial institutions, including credit unions, to operate, but under the condition that staff members and visitors be provided with personal protective equipment—especially face and eye protection. Namely, credit unions must supply respirators or face masks, including self-made ones, and must comply with appropriate sanitary and safety measures, WOCCU said.