Credit for Agriculture Producers (CAP) Project in Ukraine Quarterly Report Q1 FY2018

The project aims to strengthen the Credit Union (CU) sector in Ukraine to improve the quality of financial services and products offered to farmers and agribusinesses in rural areas. The CAP Project will achieve its objectives through a multi-faceted approach, working with the National Commission for State Regulation of Financial Services Markets (NCSRFSM), the current regulator of the CU sector, and the two national CU associations: the All-Ukrainian Credit Union Association (AUCUA) and the Ukrainian National Association of Savings and Credit Unions (UNASCU). The project's objectives include creating a favorable legal and regulatory environment for CUs, developing and implementing policies to strengthen CU performance, and expanding CU services to meet the evolving needs of their membership. The project has six key objectives: (1) establishing a legal and regulatory framework that respects cooperative principles and encourages CUs to compete on a level playing field with other financial institutions; (2) developing and implementing policies to strengthen CU performance and expand services to meet the evolving needs of their membership; (3) delivering services to CUs that meet member needs while contributing to the long-term financial soundness of the associations and their member CUs; (4) expanding CU agriculture finance portfolios while meeting member needs for timely, economic loans; (5) mobilizing savings and demonstrating financial soundness necessary to overcome liquidity constraints; and (6) supporting the implementation of the existing eight-year USAID Development Credit Authority Loan Guarantee (DCA LPG) through technical assistance to the five DCA partner CUs. The CAP Project has made significant progress in the first quarter of FY2018. The project has established a strong partnership with the NCSRFSM, AUCUA, and UNASCU, and has begun to develop and implement policies to strengthen CU performance. The project has also provided technical assistance to the five DCA partner CUs to utilize the guarantee, report on progress, and promote its results and lessons learned among other CUs in Ukraine. The project has also made progress in expanding CU agriculture finance portfolios, mobilizing savings, and demonstrating financial soundness. The project has also established a strong monitoring and evaluation framework, which will enable the project to track progress and make adjustments as needed. The CAP Project will continue to work closely with its partners to achieve its objectives and make a positive impact on the CU sector in Ukraine. The project's success will depend on the continued support of USAID and the commitment of its partners to the project's objectives. The project's progress will be closely monitored and evaluated through a range of indicators, including the number of CUs that have adopted the project's recommendations, the amount of agriculture finance provided to CUs, and the level of savings mobilized by CUs. The project will also conduct regular assessments of its progress and make adjustments as needed to ensure that it is meeting its objectives. The CAP Project is committed to transparency and accountability, and will provide regular updates on its progress to USAID and other stakeholders. The project will also conduct regular assessments of its progress and make adjustments as needed to ensure that it is meeting its objectives. The project's success will depend on the continued support of USAID and the commitment of its partners to the project's objectives. The project's progress will be closely monitored and evaluated through a range of indicators, including the number of CUs that have adopted the project's recommendations, the amount of agriculture finance provided to CUs, and the level of savings mobilized by CUs. The project's success will depend on the continued support of USAID and the commitment of its partners to the project's objectives.