|
|
|
|
|
|
|
|
|
|
  |
 |
  |
USAID Mission to Poland
Europe & Eurasia
>> E & E Home >> Poland >> Assistance Areas >> Financial Sector >> Activity Reports
Success Stories
Assistance Areas
SEED Reports
Contact Information
Last updated: 40
GINB
Pension I
Pension II
Pension III
GOP Policy
1998 Bank Assessment
2000 Bank Assessment
Credit Unions
Special Projects
Activity Reports for financial sector programs funded by USAID in Poland - the reports principally cover 1998 and 1999.
- National Bank of Poland (Banking Supervision)
- Pension Reform
- Bank System Development Project
- Cooperative Banking Development Project
- FSVC Grant
- Over-the-Counter Market Development Project
- Building the Polish Credit Union System
- Women in Rural Enterprise Development (Rural Entrepreneurship Promotion)
- Grain Storage and Marketing Project
Activity Name: National Bank of Poland (Banking Supervision)
Implementing Organization: Barents Group LLC
Start Date: February 1, 1992
Completion Date: January 31, 2000
Activity goals and achievements:
Support to the National Bank of Poland's General Inspectorate of Banking (GINB) began in 1992 with ad hoc advice on policy and legislative matters. Over that period the project grew considerably in scope peaking with four resident advisors in 1995-96. Resident advisors working in the bank supervision department are supplemented by a constant flow of short-term experts at the National Bank of Poland (NBP) covering almost all components of bank supervision, on-site examinations, uniform bank reporting, off-site analysis, problem bank issues, and legal / policy issues. A task was added in 1999 to help GINB to assess the banking sector's readiness for the Y2K conversion and to establish contingency plans.
The receptivity and absorptive capacity of the NBP and GINB was very high, as evidenced in the description in the final report. It made refining and strengthening of the ability of the NBP to promote a sound, private, market-oriented banking system possible. As the Polish banks themselves become more integrated into the international financial system, they are taking on greater risks. The GINB needs to stay ahead of the curve and USAID is playing an instrumental role in this effort.
Activity Name: Pension Reform
Implementing Organization: PricewaterhouseCoopers
Start Date: October 1, 1996
Completion Date: April 30, 2000
Activity goals and achievements:
Pension reform is one of four major reforms being undertaken by the Government of Poland. Such reform is essential for long-term fiscal stability, as pension payments are now equivalent to 15% of GDP and budget transfers to finance the deficit in the system represent 4% of GDP. This activity, implemented by PricewaterhouseCoopers (PwC), provided assistance to provide public education of Parliamentarians, journalists, trade unions, business leaders and employees regarding comprehensive pension fund reform. A second component was added to help build capacity of the newly created Office of Pension Fund Supervision (UNFE).
Work to promote passage of key legislation was supported under the activity, with continued implementation of the public education strategy; creation and distribution of brochures and leaflets; study tours to the U.S., Hungary, Chile and Argentina, and seminars to educate constituents in the new pension system. In addition to journalists and opinion leaders, key participants in the new pension system, such as the new regulator and the payments clearinghouse, also participated in the study tours. The GOP has credited the study tours with having substantial impact in influencing leaders toward passage of the legislation.
Training-of-trainers to present the new system to interest groups included staff of business support organizations (BSOs) supported by another USAID project, Firma 2000. This provides income opportunity for BSOs, while increasing reach to small business owners.
The pension reform process is descried in a number of reports:
- Pension Funds I final report
- Pension Funds II final report
- Pension Funds III final report
- Key pension reform policy and legislation
Activity Name: Bank System Development Project (Bank Payment Systems and Credit Rating Agency)
Start Date: October 1, 1996
Completion Date: March 31, 1999
Activity goals and achievements:
The objective of this $1.8 million project was improvement of the Polish banking system in two functional areas: bank payments and credit rating. The Payments tranche provided assistance aimed at increasing efficiency in making payments and settling transactions. The goal of the Credit Rating tranche was capacity building for the country’s first domestic rating agency.
Bank Payment Systems
The Implementor was successful in the following:
1. continued collaboration on a common electronic platform for the banks in Poland;
2. providing advice to the National Clearing House on procurement of data processing systems;
3. organizing the fall conference on payments focusing on Polish payment system compatibility with that of EU;
4. providing analyses of the low usage of pay cards in Poland, which resulted in the adoption of new pricing schemes by Polish banks;
5. increasing Y2K awareness.
Credit Rating Agency
The key achievement was establishment of a strong relationship with the leading international rating agency - Thompson BankWatch (TBW). Presently, TBW is a principal shareholder (40% of stock) in the Polish entity, CERA S.A. This development has two positive spillover effects:
1. the assisted Polish entity has acquired capital necessary for business development, and
2. the Polish counterpart has established relationship with the international agency.
Activity Name: Cooperative Banking Development Project
Start Date: May 9, 1997
Completion Date: July 31, 1998
Activity goals and achievements:
The Cooperative Banking Development Project (CBDP) sought to assist the development of a system of independent local cooperative banks (LCBs) and to enhance their capacity for providing credit and other financial services to their customers. Since 1994, obligations totaled approximately $2.4 million to Agricultural Cooperative Development International (ACDI), the project Implementor, to fund technical assistance to the Polish cooperative banking sector in the form of banking and financial advisors and consultants. This technical assistance contributed to the improvement of the capability of these Polish financial institutions. The activity ended July 31, 1998 and this is its final performance review report.
Over the course of the project, CBDP successfully identified several factors which had prevented cooperative banks from competing with commercial banks and accordingly implemented several initiatives to ensure greater competition. The major accomplishments were:
- PC packages: Bank Financial Planning Model (BFPM) to reflect the new chart of accounts effective since Jan 1997; bank budgeting, interest income analysis, and marketing planning;
- a performance evaluation system (Peer Bank Comparative Analysis) to help cooperative banks understand their competitive position relative to their peers and to identify opportunities to enhance their competitiveness with commercial banks; a related publication, "Analyzing Financial Performance", oriented at increasing competition awareness among LCBs was distributed; a "Bank Scoring Program" providing an overall picture of a bank's performance was developed;.
- a manual "Fundamentals of Credit", coupled with a training session.
Finally, the CBDP managed to find a successor organization, which besides its core business (training and consulting services to banks) continues to disseminate the Project’s achievements.
Activity Name: FSVC Grant
Start Date: 1990
Completion Date: December 31, 1998
Activity goals and achievements:
This activity provided support to the entire financial sector portfolio by providing expert volunteers from a broad range of American financial institutions to transfer skills and knowledge to Polish institutions and to provide expert advice to policymakers. The activity began in 1990. As USAID/Warsaw closed out, this activity became more important as a transitioning vehicle to help ensure the sustainability of results achieved through other financial sector activities. FSVC monitored financial sector activities, including USAID projects in their final phase, to provide priority assistance on an as-needed, demand-driven basis.
As an example of FSVC's work, we present the work completed in 1998:
Pension Reform. Various projects to support on-going activities by USAID to help Poland implement its new pension system in 1999. FSVC arranged a study tour to the U.S. for senior government and private sector officials who will have a key role in the new system; in-country investment management training for prospective pension fund managers; and sponsored a lecturer for a pension actuarial conference.
Capital Markets. Study tour to the U.S. arranged for management of Poland's over-the-counter market. Accounting standards, investor relations and commodities exchange training provided for Polish SEC.
Banking. FSVC continued work with the National Bank's bank supervision authority. Sponsored U.S. lecturers for a liquidity risk management seminar and sent a study tour to the Federal Deposit Insurance Corp. to learn about Y2K issues and regulatory responses. Also, provided U.S. study tour to help train the Warsaw Institute of Banking's new marketing manager.
Insurance. FSVC provided volunteers and arranged study tours to the U.S. to teach staff of the insurance regulator in the areas of underwriting and pricing, reinsurance, regulating for solvency, and general insurance supervisory topics.
Activity Name: Over-the-Counter Market Development Project
Implementing Organization: KPMG Peat Marwick/ Barents Group
Start Date: September 28, 1995
Completion Date: December 31, 1997
Activity goals and achievements:
This $4.7 million project sought to ultimately develop a sustainable over-the-counter (OTC) market in Poland in order to provide additional sources of capital to small- and medium-sized businesses as an alternative to the state-owned Warsaw Stock Exchange. USAID provided assistance for creation of all elements of a trading system, marketing, broker training, and financial assistance to help competitively selected firms list on the OTC market. Barents, USAID's Implementor for this project, ended its on-site activities in July 1997. The financial assistance to selected firms continued until December 31, 1997. The electronic trading system was transferred to the activity’s beneficiary, CeTO S.A.
Activity Name: WOCCU – Building the Polish Credit Union System
Implementing Organization: World Council of Credit Unions
Start Date: September 26, 1995
Completion Date: March 31, 1999
Activity goals and achievements:
This project was designed to promote, organize and develop private savings and credit institutions in Poland. The establishment of savings and credit unions (SCUs) broadens the availability of savings and loan services to lower-income Polish citizens who represent a less attractive consumer base for traditional banks due to lower profit margins and higher loan risk. This $1.4 million USAID grant to the World Council of Credit Unions (WOCCU) was used to support the ongoing activities of the Foundation for Polish Credit Unions (FPCU) and the National Association of Cooperative Savings and Credit Unions (NACSCU). Project activities were completed in March 30, 1999.
Self-sustainability of the credit union movement is becoming a fact, with other financial sector institutions (cooperative banks) joining the movement, whose legal formula is relatively attractive to those who see their mission in providing service to the lower-income, non-bankable communities. A final report prepared by WOCCU includes more information, as does a research monograph prepared by WOCCU in September 1999.
Activity Name: Women in Rural Enterprise Development (Rural Entrepreneurship Promotion)
Start Date: September 23, 1996
Completion Date: June 30, 1999
Activity goals and achievements:
Women in Rural Enterprise Development (WRED), or as it is called now Rural Entrepreneurship Promotion (REP), was a program under the auspices of the Foundation for the Development of Polish Agriculture, FDPA, a Polish foundation financed by various international sources. REP is a microloan facility promoting entrepreneurship, mainly for women as an alternative to unemployment in rural communities. REP offers preparatory training in business and management, small loans and advisory services. The primary focus of the project is to develop entrepreneurial skills and to provide access to credit for the support of family business in the most economically depressed areas of rural Poland.
In addition to providing small business loans, REP provided extensive training to about 1,500 potential entrepreneurs this reporting period. REP also worked on new promotion materials. Furthermore, REP conducted a survey of their clients on how their lives were changed by business activities started thanks to REP.
Other accomplishments:
- installation of the new loan monitoring system in the Warsaw office;
- installation of a new, electronic on-line, real-time banking system "Contact";
- completion of the process of providing modern computer equipment to field offices.
Activity Name: Grain Storage and Marketing Project (GSMP)
Start Date: July 17, 1995
Completion Date: December 31, 1999
Activity goals and objectives:
The ACDI/VOCA pilot elevator project ought to provide farmers with an opportunity to deposit grain in licensed warehouses in exchange for receipts which can be used as collateral at pilot project banks to obtain short-term loans. In addition, organization of grain trading, through warehouses, are to facilitate Poland's development of a commodities futures market under the auspices of the Warsaw Board of Trade. The activity was extended to December 1998 to include more grain elevators and to support the passage of the warehouse legislation.
The focus of the activity in the final phase of work this period was assisting the Ministry of Agriculture and the Parliament to draft legislation for warehouses and warehouse receipts. The Ministry did not support the legislation and ACDI/VOCA drafted legislation, and it has been introduced to the Parliament as a parliamentary initiative. The political process for passage is ongoing. An extension of this activity was granted to continue support of this legislation to the point at which the likelihood of ultimate passage is good. While passage by the end of the activity is unlikely, much progress has been made.
Additionally, the Polish Securities and Exchange Commission requested and received assistance under this activity to strengthen their internal operations for supervising commodities exchanges. Advisors also commented on proposed commodities legislation.
Achievements and barriers faced by this project are noted in the final report.
Despite these achievements, passage of legislation fundamental to the operation of the system of licensed warehouses and warehouse receipts has not occurred. In its absence, the system will not move beyond its current, limited stage of implementation.
Further, even though the first loans using warehouse receipts as collateral have been originated, farmers are most interested in obtaining preferential loans. The use of warehouse receipts by farmers is largely limited to evidence of grain stored in licensed elevators.
Lastly, the activity anticipated the creation of an indemnity fund for the grain warehouse system, which is being worked on under the auspices of an additional initiative funded by the European Bank for Reconstruction and Development.
 |
|||
Last Updated on: March 13, 2002 |
