Ukraine's Central Bank, IFC sign memorandum to accelerate financial inclusion in the country.

The partnership is supported by Switzerland and the United Kingdom.

REUTERS

REUTERS

The National Bank of Ukraine (NBU) and IFC, a member of the World Bank Group, on August 6 signed a Memorandum of Understanding on joint efforts to accelerate financial inclusion in the country by expanding access to credit and promoting electronic payments for Ukrainians and small businesses.

The Memorandum of Understanding between the National Bank of Ukraine and IFC was signed by Kyrylo Shevchenko, NBU Governor, and Jason Pellmar, IFC Regional Manager for Ukraine, Belarus, and Moldova, the NBU said on its website.

Read alsoWorld Bank appoints new Country Director for Belarus, Moldova, Ukraine

"This cooperation agreement is part of IFC's four-year Ukraine Financial Inclusion for Growth Program, implemented in partnership with the Swiss State Secretariat for Economic Affairs SECO and the UK Government's Good Governance Fund," the NBU said.

According to the World Bank Group's Global Findex database, around 40% of Ukraine's adult population lacks an account at a financial institution, while most account holders still use their bank cards to withdraw cash. The new partnership aims to:

  • Introduce new financial products for Ukrainians and small businesses;
  • Expand access to savings accounts and secure loans;
  • Make financial services more accessible, higher quality and broadly used by Ukrainians; and
  • Develop a comprehensive regulatory framework to protect consumer rights.

The partnership within the Memorandum will also facilitate the creation of competitive market conditions for financial service providers aiming to decrease transaction costs for customers and to open new opportunities for business growth in digital financial services.

"My main goal as NBU Governor is to increase the welfare of Ukrainians. The NBU will welcome and support the efforts of our international partners in this direction," said Kyrylo Shevchenko, NBU Governor. "The Memorandum of Understanding is an important step forward. Involvement of citizens into the financial system, access to financial services, protection of clients of financial institutions are the priorities of our joint work."

IFC will also provide technical assistance to the National Bank of Ukraine, helping it develop a national financial inclusion strategy. "Responsible finance solutions can lead to breakthrough opportunities for Ukraine, enabling individuals and businesses to access much-needed financial services. It is also crucial to open the market for investors, fueling the country with sustainable growth," said Jason Pellmar, IFC Regional Manager for Ukraine, Belarus, and Moldova. "Building on our global experience, IFC will help Ukraine to expand access to finance to underserved segments by improving and promoting the use of digital financial services, introducing principles of consumer protection and supporting the transformation of a credit reporting system."

Supporting responsible and inclusive financial services is an important part of IFC's strategy in Europe and Central Asia. To date, the World Bank Group has helped over 65 institutions worldwide to implement responsible finance solutions across microfinance, insurance, housing finance, sustainable energy finance, mobile banking, agri-finance, and credit reporting.

Related news

NBU sells US$71 mln on Sept 14-18 to support hryvnia.

Over the period under review, the regulator did not buy the currency.

3 9

Week's balance: Cabinet submits budget draft to Rada, Zelensky promises «human» salaries and pensions, while hryvnia keeps weakening.

The Cabinet of Ministers submitted to parliament the draft state budget for 2021, which provides for a budget deficit of 6% of GDP, President Zelensky promised Ukrainians to raise salaries and pensions to the "human level", while the hryvnia conti...

2 14

Ukrainian business receives UAH 8B under Affordable Loans program – Marchenko.

Since the launch of the state program "Affordable Loans at 5-7-9%", Ukrainian entrepreneurs have received loans worth about UAH 8 billion, Finance Minister Serhiy Marchenko has said.

1

PM says it’s realistic to get GDP growth at 4.6% next year

Prime Minister of Ukraine Denys Shmyhal believes that GDP growth at 4.6%, which is included in the draft state budget for 2021, is completely realistic.

1 1

Hryvnia weakens to U.S. dollar on Sept 21

The official forex rate against the euro for Monday is fixed at UAH 33.35 per euro.

Extended border closure another obstacle for Alberta Indigenous tourism industry.

Indigenous tourism was growing in Alberta before the pandemic hit. Now, many operators hope their doors will still be open when travel restrictions ease.

PM Shmyhal: Government working on measures to facilitate Ukraine's economic recovery.

Shmyhal announces work on measures to facilitate Ukraine's economic recovery / REUTERSUkraine's Cabinet of Ministers is working on measures that will help facilitate the country's economic...

1 11

Agricultural production in Ukraine almost 10% down in eight months.

Both agri-businesses and private farmers reduced production.

Banker Pysaruk accuses NABU of lack of professionalism and pursuing its own agenda.

Oleksandr Pysaruk / Photo from UNIAN‘NABU has demonstrated that it lacks professionalism and is pursuing its own agenda in the case against Pysaruk and Bakhmatyuk by pressing baseless charges...

Bakhmatyuk sums up losses from ‘a year of war’ waged against him by NABU: 9,000 jobs and 0.

Oleg Bakhmatyuk / Photo provided by the press serviceOne year into NABU's war against Bakhmatyuk, his company has lost more than the value of assets abandoned in the occupied Crimea and Donbas...

By continuing to browse World News (UAZMI), you acknowledge that you have read the Terms of Use and agree to the use of cookies