Ukraine and Moldova TA for Financial Inclusion Recovery (UMIR)

On 29 March 2023, the EIB Board of Directors approved a Support Package for Ukraine, the EU for Ukraine Initiative (“EU4U Initiative”), to support priority recovery and resilience investments as well as the EU accession process (short-term to medium-term) in Ukraine. This Support Package includes an envelope “EU4U Advisory Programme” that can finance the provision of technical assistance and advisory services for immediate needs as well as reconstruction efforts and accession support in Ukraine and Moldova from which, EUR 10 million has been secured for the UMIR assignment. The overall objective of this Technical Assistance (TA) assignment is to promote responsible financial inclusion in Ukraine and Moldova. In Ukraine, the objective further includes contributing to the resilience and strengthening of the inclusive finance sector both during conflict and post-war setting. To achieve its objectives, the assignment will focus on building the capacity of the selected Financial Institutions (FIs) to offer responsible and inclusive financial and non-financial services while adhering to best banking practices and addressing transversal EU policy objectives with regards to climate action, environmental sustainability, financial and social inclusion, and social standards. In parallel, the assignment aims to support entrepreneurship in the two countries by providing capacity building, vocational education and coaching to final beneficiaries, so as to increase income generating opportunities, enhance resilience to economic shocks, create jobs, help veterans to re-join the workforce and tackle unemployment. The TA assignment aims to improve the range and quality of financial and non-financial services on offer to the Final Beneficiaries/clients, particularly those from more vulnerable groups (including war afflicted areas/regions/sectors/businesses, internally displaced people (IDPs), veterans, start-ups, women and/or youth in business, etc.) that are currently unserved or underserved. The assignment activities will be rolled out via 5 components: i) TA needs assessments and sector studies. This component will allow the service provider to conduct TA needs assessments of all beneficiaries as and when they join the assignment. It will also include wider market or segmentation studies, country research etc., that may be required either by a beneficiary or by the EIB. ii) Customised capacity building activities for Financial Intermediaries. Under this component, adapted and customised TA actions will be designed for each FI based on the results of the TA needs assessment and the weaknesses identified. Support can include but not be limited to the provision of staff/board trainings, (on the job) coaching, support in revising and updating policies, procedures etc. and may touch on a variety of topics. iii) Ensure assignment beneficiary compliance with EIB processes and requirements as well as international standards. iv) Capacity building and advisory services to support development and growth of MSMEs. Under this component, the assignment will provide MSMEs with access to a variety of support services (including training and coaching) to help them improve their financial literacy, business and entrepreneurship skills as well as prepare and develop bankable projects and investment proposals. v) Support an enabling inclusive finance environment for inclusive growth and job creation. This component will allow the TA assignment to work and support (in a limited capacity) the wider inclusive finance eco-system in both countries of operation so as to promote a responsible and inclusive financial sector.