The European Union Tacis Project Credit Cooperatives Russian Federation

About Project

The EU Supports the Development of Credit Cooperatives in the Russian Federation

The Tacis Programme is a European Union initiative, which provides grant finance for know-how to foster the development of market economies and democratic societies in Eastern Europe, the Caucasus and Central Asia. Since 1991 Tacis has granted over 2.6 billion Euro for the implementation of more than 1.500 projects in Russia.

Under past action programmes, Tacis' overreaching objective in this area of cooperation was to establish conditions leading to an increase in private investment. Tacis aimed at supporting a federal policy for SME activity.

The Project aimes to support the development of Credit Cooperatives in Russia as well as to improve their operating system and the legal frame.

REFERENCE INFORMATION

Supports the Development of Credit Cooperatives means:

• Provision of small and medium enterprises in the urban and rural sectors with access to credit resources.
• Diversification of the credit system.
• Creation of the necessary legislative and regulatory framework.
• Rise and development of the co-operative crediting system.
• Support to the institutional development of credit unions.
• Creation of a strong training capacity for credit unions.
• Fostering the professional growth of credit cooperatives’ officers.
• Promotion of world experience.

Strategy:

Analysis of the existing credit system, identifying problems; development of the concept of meeting financial/credit needs of the urban and rural sectors.

Development and implementation of an intensive program of CCs’ institutional development.

Assisting in establishing regional centres to support CCs; assistance in establishing the liquidity fund; laying out the groundwork for a co-operative bank.

Anticipated Results:

• Increase of total assets of participating credit unions.
• Credit cooperative system strengthen-ed, new structures created.
• Legislation for rural SMEs improved.
• Urban and Rural economy and well-being growth.
• Promoting collaboration between the different levels through regional and federal common structures.

Activities:

• Co-operation with the Ministry of Economic Development and Trade, CBR, State Commission for Financial Services Markets Regulation, associations and individual credit unions, as well as other stakeholders.
• Study and promulgation of the world experience of credit co-operation and providing the rural sector with access to credit resources; implementation of awareness campaigns.
• Development and improvement of co-operative legislation.
• Fostering the establishment of regional co-operative banks.
• Research on most topical issues of credit co-operation and creation of a reference library.
• Promoting institutional development of credit establishments.
• Training for credit establishments in the issues of crediting, strategic planning, liquidity management, etc.
• Development and production of modern training materials and establishment of sustainable training capacities operating independent of the Project.
• Development of standardized procedures and internal regulations to ensure efficient operation of credit unions.

We work in the Pilot Regions: Astrakhan Oblast, Republic of Buryatiya and Yaroslavl Oblast.