Final Report: Access to Credit Initiative in Ukraine & Moldova

The project was implemented by the Pragma Corporation for the US Agency for International Development (USAID) from October 2004 to October 2009. The project's objective was to assist Ukraine in achieving increased economic growth by improving access to credit in mortgage lending, financial leasing, and secondary markets for sovereign, sub-sovereign, and mortgage-covered bonds. The project had five major components: Mortgage, Fixed Income, Credit Bureau, Financial Leasing, and Municipal Bonds. The Mortgage Component aimed to increase mortgage lending by training mortgage industry professionals, building the capacities of institutions and associations, and creating a market in mortgage-covered bonds. The project's results showed a significant increase in outstanding mortgage balances, from UAH 10.0 billion at the end of 2004 to UAH 80.0 billion at the end of September 2008. The project also introduced International Valuation Standards in appraisal, laid the groundwork for and created credit bureaus, and brought Ukraine's first covered bond to market. Additionally, the project trained over 2,500 mortgage industry professionals and built the capacities of institutions and associations needed to support active mortgage lending. The Fixed Income Component focused on developing secondary markets for sovereign, sub-sovereign, and mortgage-covered bonds. The project introduced a debt management forum and a domestic government securities market, and it also brought Ukraine's first covered bond to market. The Credit Bureau Component aimed to develop credit bureaus to support and accelerate the growth of credit. The project created a business plan for a credit bureau and developed a brochure to promote the concept of credit bureaus. The Financial Leasing Component focused on developing financial leasing in Ukraine. The project introduced a leasing manual and a certified leasing specialist program, and it also trained over 1,000 leasing professionals. The Municipal Bonds Component aimed to develop municipal bonds in Ukraine. The project introduced a generic bond issue timetable and an investment memorandum for the city of Ivano-Frankivsk. The project's results showed a significant increase in outstanding mortgage balances, from UAH 10.0 billion at the end of 2004 to UAH 80.0 billion at the end of September 2008. The project also introduced International Valuation Standards in appraisal, laid the groundwork for and created credit bureaus, and brought Ukraine's first covered bond to market. The project's achievements were not limited to the Mortgage Component. The project also introduced a debt management forum and a domestic government securities market, and it also brought Ukraine's first covered bond to market. Additionally, the project created a business plan for a credit bureau and developed a brochure to promote the concept of credit bureaus. The project's results were not without challenges. The project faced a significant increase in outstanding mortgage balances, which was largely due to the Ukrainian housing bubble and the USD-based carry trade. However, the project's achievements were significant, and they laid the groundwork for future development in the financial sector. The project's success was due in part to its focus on building sustainable infrastructure in the financial sector. The project trained over 2,500 mortgage industry professionals and built the capacities of institutions and associations needed to support active mortgage lending. The project also introduced International Valuation Standards in appraisal, laid the groundwork for and created credit bureaus, and brought Ukraine's first covered bond to market. The project's results were also influenced by the project's focus on gender equality. The project applied its mandate to promote gender equality throughout all component activities, and it achieved significant results in this area. Overall, the Access to Credit Initiative in Ukraine and Moldova was a significant project that achieved significant results in improving access to credit in key areas of the financial sector. The project's achievements laid the groundwork for future development in the financial sector, and they demonstrated the importance of building sustainable infrastructure in the financial sector.