Ukraine’s transition to a market economy has been a difficult process. While dismantling a command economy deeply integrated with the Soviet system has presented serious challenges, USAID programs have made a substantial difference in several key areas.

Financial Sector Reform

Capital Markets Project

• Coordinated and worked with the Securities and Stock Market State Commission on supporting passage of the recent Law on Securities and the Stock Market leading to internationally compliant legislative framework for the capital market.

• Completed extensive foundation work in the area of information systems necessary to support financial sector development, and institutional assessments of IT capacity at the Financial Services Regulator and the Securities and Stock Market State Commission leading to development of an effective information system for exchange of information between regulators.  

• Repaired and re-launched the SMIDA website at the SSMSC which serves as the major source of  financial disclosure in Ukraine.  

• Provided a program for resolving current problems with the Government of Ukraine’s program for a national depository, pursuant to implementation instructions from the Cabinet of Ministers to the Securities and Stock Market State Commission.  

• Developed with CASE/Ukraine a quarterly and annual macroeconomic and financial sector report on the Ukrainian financial sector.

• Provided assistance to the Ministry of Labor and Social Policy on pension reform draft laws.

Accounting Reform

• Initiated a regional training, testing, and certification program – the Certified International Professional Accountant (CIPA) - that complies with international professional standards.

• Developed standardized procedures on converting to the International Accounting Standards, and provided assistance to over 800 enterprises on converting their practices.

• Stimulated establishment of two professional accountancy associations promoting accounting and audit reforms.

• Created a pool of trainers who have delivered courses to more than 8,000 participants courses in 17 oblasts and the Autonomous Republic of Crimea.
• Certified 1,861 certified accounting practitioners and 39 certified international professional accountants.
• The National Bank of Ukraine (NBU) has approved certain CIPA exams as qualifying examinations for a statutory independent bank auditors license (as well as CPA and ACCA exams).

Access to Credit

• Assisted the State Mortgage Institution (SMI) with organizational start-up, business plans, and underwriting standards in preparation for its mortgage crediting program and pilot mortgage-backed bond issue.

• Assisted the City of Ivano-Frankivsk to issue and place its first pilot municipal bond for improvement of street lighting.  
• Facilitated the start-up of five internationally recognized leasing companies in Ukraine.  

Commercial Law 

• With USAID assistance, the new Civil Code was prepared, passed by the Parliament in 2003, and took effect on January 1, 2004.

• USAID, in collaboration with the World Bank, assisted in improving a new secured transactions law, passed in November 2003. The law expands the concept of security interest and rights that can be used as collateral; defines proper registration procedures and priority provisions; improves the mechanisms for enforcement of collateral; and decreases the opportunity for court interference with enforcement of collateral.

• The USAID Financial Restructuring Project provided assistance in drafting a new Bankruptcy Law, which was passed by the Parliament and became effective in January 2000. The law created the framework for a modern insolvency regime and contains powerful provisions for restructuring insolvent enterprises and debt forgiveness.  

• The USAID Commercial Law Center (CLC) assists Parliament and government ministries in drafting and improving commercial law legislation, and provides training for commercial law professionals and promotes public education on commercial law reform. To date, more than 2,400 public and private attorneys, including approximately 1,200 bailiffs and 1,300 entrepreneurs, have been trained at the Center.

• The CLC drafted Book IV (Intellectual Property Rights - IPR) of the Civil Code in accordance with international IPR protection and enforcement.

• CLC’s legislative support efforts have been complemented with comprehensive training programs covering