Kyiv, Ukraine, May 28, 2020— IFC, a member of the World Bank Group, is launching a new advisory project in Ukraine aimed at increasing support to the financial sector, broadening the base of bank account holders, and expanding access to credit for small businesses, while also creating a framework for the introduction of more innovative financial services.
This is part of IFC’s continuing effort to attract private investment into Ukraine’s financial sector and to fuel the country’s economic growth. IFC’s four-year Financial Inclusion for Growth Project will be implemented in partnership with the State Secretariat for Economic Affairs of Switzerland SECO and the U.K. Government’s Good Governance Fund. IFC will work with the National Bank of Ukraine, Ministry of Finance and Ministry of Digital Transformation, local financial institutions, and payment providers to develop digital financial services and strengthen confidence in the financial sector. The project will help financial services users and providers address the challenges that hamper the private sector’s growth.
A round 40 percent of Ukraine’s adult population lacks an account at a financial institution, according to the World Bank Group’s Global Findex database . IFC’s advice will enhance the regulatory framework to protect the rights of consumers, modernize credit information-reporting systems, boost the use of digital financial services, and promote financial education. The project will introduce new approaches and financial products that will address the needs of individuals and SMEs. It will also strengthen information flows from and to lenders and borrowers to ensure they both can make the right decisions.
“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 achieving 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 credit information and digital financial services.”
The World Bank Group (WBG) has supported its clients to implement responsible interventions to deepen financial outreach and expand product offerings sustainably. To date, the WBG 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.
Supporting responsible and inclusive financial services is an important part of IFC’s strategy in Europe and Central Asia. Since 2004, IFC has committed over $3.3 billion in long-term financing in Ukraine across a diversified portfolio of projects—of which $1.1 billion was mobilized from partners—and implemented a wide-ranging advisory program. In addition, we have supported more than $1.2 billion of trade through IFC’s Global Trade Finance program.
About IFC
IFC — a sister organization of the World Bank and member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2019, we invested more than $19 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
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About SECO
SECO is Switzerland’s competence center for all core issues relating to economic policy. SECO’s economic development cooperation strives to achieve inclusive sustainable growth and poverty reduction in its partner countries. Its activities aim to create more and better jobs, to enhance trade and competitiveness, to support effective institutions and services and to foster climate resilient economies. For more information, visit www.seco-cooperation.admin.ch or www.eda.admin.ch/kyiv .
About GGF
The UK Government’s Good Governance Fund (GGF) has a primary objective of building resilience in targeted countries by providing support for domestic reform agendas which reduce corruption; promote transparent and accountable institutions; and build open, inclusive economies and societies. For more information, visit: https://www.gov.uk/ .
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