Credit unions are making a difference in Ukraine!
A $100,000 loan reimbursement program from the Worldwide Foundation for Credit Unions’ Ukrainian Credit Union Displacement Fund has provided targeted aid to100 farmers facing a food security crisis brought on by Russia’s war in Ukraine, the World Council of Credit Unions reported this week.
Since the program launched in June through the WOCCU’s Credit for Agriculture Producers Project and Ridnia, a Ukrainian NGO, 100 farmers have been reimbursed on 10% of their principal payments for agricultural loans they took out at Ukrainian credit unions from February 24 to April 30. These types of loans typically average 50,000 UAH (U.S. $1,700), according to WOCCU.
For Volodymyr Prysiazhnyi, who grows soy and buckwheat on his 20-acre plot of land, the war caused an increase in fuel costs and uncertainty about future sales prices. But he managed to stay afloat due to the reimbursement fund and remains optimistic.
“Such support from the global credit cooperative community inspires hope for the future,” said Prysiazhnyi.
At EXCEL 22, the New York Credit Union Association’s Annual Meeting & Convention, the chair testimonial honoring past board chair Ann Hynes raised $20,000, which was donated to the Ukrainian Credit Union Displacement Fund.
The next stage of the program will provide reimbursement to farmers who received agricultural loans from Ukrainian credit unions between May 1 and June 30, with $100,000 made available through the program expected to reimburse at least 585 farmers, according to WOCCU.