Technical Assistance Programme to various EIB Microfinance Operations in Ukraine, Moldova and Georgia

The DCFTA Initiative East is a facility aimed at supporting economic growth and employment-generating activities in Georgia, Ukraine and Moldova. The DCFTA facility comprises customised technical assistance to counterpart Financial Institutions (FIs) in the 3 aforementioned countries.

The purposes of this technical assistance operation are as follows:

  • To provide Final Beneficiaries in rural locations in Ukraine with access to quality responsible financial services to fund their income generating activities, particularly in the agricultural sector;
  • To improve the reputation and trust levels of Financial Institutions, particularly in Ukraine and Moldova, through the implementation of transparent best practices and social performance management;
  • To contribute towards unemployment reduction by offering populations in the Eastern Neighbourhood improved access to a diverse and responsible range of financial and non-financial products aimed at encouraging income generation;
  • To enhance the Financial Institutions’ compliance to national banking and/or microfinance regulation and international standards;
  • To safeguard the EIB’s reputation and investments by ensuring that Financial Institutions have sound credit risk management procedures in place and serve a growing number of creditworthy clients;
  • To improve loan processing and deployment efficiency and facilitate the contractual relationship between the Financial Institutions and the EIB;
  • To increase the flow of external investment coming into the region thanks to improved banking transparency and reporting practices.


Services provided include, but are not limited to:

Component 1: Design and deliver training programmes focussing on Credit Risk Management as well as on Banking and Administrative Risk Management to FIs.

  • Training programmes in critical subjects that will strengthen the flow of creditworthy and sound MSEs’ loan applications.
  • The training on social and environmental standards as well as social and environmental risk assessment and management.
  • Conduct trainings is to ensure the management of creditworthy and sound loan applications protecting the Financial Institutions, as well as the EIB, from credit and reputational risks
  • Address Financial Institutions training needs in relation to the EIB’s eligibility criteria on KYC processes and AML/CFT procedures


Component 2: Provide targeted capacity building via consulting interventions for each FI

  • Identification of specific weaknesses of the individual Financial Institutions in operational, financial, social and administrative areas;
  • Provision of specific capacity building designed to improve the identified weakness;
  • Provision of necessary coaching related to the implementation of new tools and processes (to be jointly identified and validated by the Financial Institution and the Consultant).


Component 3: Organise a series of MSE support actions aimed at raising the level of financial literacy, improving managerial capacity and building entrepreneurship skills of potential financial beneficiaries in order to help them present bankable projects to FIs.

  • Organise trainings for current and potential Final Beneficiaries to improve their level of financial literacy (focusing in particular on the understanding of a debt instrument, savings and the importance of responsible credit and prevention of over-indebtedness)
  • Improve their managerial capacity and entrepreneurial skills.
  • Raise awareness on  the existence of the Risk Capital Facility so as to capture a pool of eligible borrowers and upstream them towards a smooth deal flow for FIs.
Europe / CIS
Project number: 
2019-01-01 to 2022-09-30
European Investment Bank (EIB)