May 30, 2025
PRESS RELEASE
The Deposit Guarantee Fund (DGF) signed a Memorandum of Cooperation with the World Council of Credit Unions (WOCCU).
The DGF Managing Director Olga Bilai and Interim President and CEO of WOCCU Paul Treinen signed the document.
The Memorandum defines forms and directions of the cooperation between the two institutions. Specifically, the WOCCU shall provide advisory assistance in the implementating of a deposit guarantee system for the credit union members; assist in the development of draft laws and regulations and help implement the relevant EU regulatory norms into Ukrainian legislation.
The Memorandum builds on the existing cooperation between the WOCCU and the DGF which was previously operated within the framework of the USAID “Credit for Agriculture Producers (CAP)” and “GROW” projects in Ukraine.
The DGF constantly emphasizes the relevance of introducing a deposit guarantee system for credit unions’ members. This step shall significantly increase confidence of depositors in the non-bank financial sector, giving it a new impulse for development and creating equal opportunities for depositors. In addition, credit unions in Ukraine as a widespread alternative to banks, also play an important social role offering services to communities in small towns and villages (including those on the frontline) financed by their members. According to the updated Law of Ukraine ‘On Credit Unions’ individuals, farms, condominiums, sole-traders, religious organizations, trade unions and small businesses can be members of credit unions.
In her recent interviews, Managing Director of the DGF Olga Bilai emphasized, that "guarantees will apply to a larger number of market participants, as the deposit guarantee system will be extended to credit unions, which also attract individuals’ deposits and provide loans to small and microbusinesses, performing a very important function in the economy".
The extension of a deposit guarantee system coverage for credit unions is in line with the provisions of Directive 2014/49/EU and Core principles of the International Assosiation of Deposit Insurers (IADI). Furthermore, the Memorandum of Ukraine with the IMF states that development of a deposit guarantee system for credit unions is expected following the cancellation of martial law and the implementation of all the necessary legislation for that.
Ukraine is actively preparing to implement the European standards in the deposit guarantee system. This scheme will be fair to the clients of all credit institutions, it also set out in the Strategy of Ukrainian Financial Sector Development.
Note, the World Council of Credit Unions (WOCCU) is a main global institution for credit unions, it was established in 1971 and is headquartered in Wisconsin, USA.
There are 75 thousand active credit unions worldwide with total assets amounting to over USD 3.7 trillion.