1995, FMI has been actively involved in the economic development of
Eastern Europe and the Former Soviet Union. FMI has worked with donor
agencies and private institutions to develop and implement various
technical assistance projects in the areas of capital markets,
corporate governance, legal systems, accounting, pensions, insurance,
and securities exchange development.
has successfully implemented numerous multi-year, multi-faceted
projects in the region, totaling over $100 million in value. Over the
past fifteen years, FMI has worked extensively in Ukraine, Bulgaria,
Albania, Romania, and Russia.
FMI’s Ukraine experience features extensive capital market development
projects, legal and regulatory reform programs, and non-bank financial
institution (NBFI) development work. This work includes securities
market development, pension sector reform and privatization, accounting
reform, financial disclosure systems, and drafting laws and regulations
for the Verkhovna Rada, State Stock Market and Securities Commission
(SSMSC), and the State Commission for Regulation of Financial Services
Markets of Ukraine (FSR).
FMI in Ukraine since 1996
USAID/funded adviser on over US$30 million in capital markets,
financial sector reform, corporate governance and legal/regulatory
issues in Ukraine, including:
- Foundational institutional strengthening and legal reform work with the Ukrainian Securities Commission (1995-1999).
- Accounting and information disclosure reform, with a nationwide pilot program and public awareness activity (1998-2000).
governance training and international financial reporting standards
development with universities, the government, the judiciary, banks,
and market participants (2001-2004).
markets infrastructure development, pension funds development and
regulation, financial instruments design, and disclosure systems
reform, mortgage bond and bank recapitalization and resolution,
financial sector regulatation and supervision, and debt restructuring
and financial literacy campaigns (2009-2012).
- Financial sector supervision and regulation, pension reform,
commodity and derivatives market development, and financial literacy, consumer
protection, and public awareness (2012-2017).
Selected examples of FMI’s Ukraine-based
projects include the Capital Markets Development Project (CMP), which
is currently assisting Ukraine’s Financial Services Regulator (FSR),
the Securities and Stock Market State Commission (SSMSC), several stock
exchanges, MFS Depository, National Bank of Ukraine, and leading
financial sector SROs. The Project has strengthened the regulatory
authorities, removed legal and regulatory impediments for issuing and
trading securities, established an All Ukrainian Securities Depository,
proposed the introduction of new financial instruments, and delivered
international training in conjunction with the U.S. SEC. FMI has also
been active in pension sector reform, developing prudential regulation
and operational guidelines for the nascent private pension fund sector,
and for a Mandatory Accumulation System. During USAID’s International
Business Standards and Corporate Governance Project in Ukraine, FMI
focused on improving the business climate in Ukraine, through corporate
governance reform and financial sector transparency.
BOSNIA AND HERZEGOVINA
FMI is implementing the USAID/Bosnia and Herzegovina Harnessing BiH Diaspora for Economic Development Activity. This program is creating new job opportunities for the citizens of BiH through increased diaspora investment, with an emphasis on providing capital to viable SMEs and startups. The project has three components: 1) leveraging diaspora input, into the development of an institutional policy framework for diaspora investment; 2) expanding diaspora direct investment by providing technical assistance and grants to eligible, early-stage SMEs and start-ups; and 3) developing a sustainable local platform to provide business services and investment facilitation to potential diaspora investors. FMI is working with USAID and a range of local partners to mobilize the BiH diaspora and channel diaspora resources to create new private sector jobs across a range of sectors.
FMI is also implementing the USAID/Bosnia and Herzegovina Financial Reform Agenda Activity (FINRA). This program is improving financial sector stability by supporting the financial sector reforms outlined in the IMF Extended Fund Facility policy benchmarks and the European Union’s Reform Agenda. The project has three components: 1) enhancing bank supervision, deposit insurance, insurance sector oversight, and NBFI development; 2) assisting the Central Bank of BiH to bolster its role in promoting financial stability; and 3) improving the quality and accountability of government spending. FMI’s team of international, regional, and local technical advisors are working with USAID and local counterparts to support EU and IMF reforms, thereby advancing BiH towards EU accession.
FMI is implementing the USAID/Kosovo EMPOWER Credit Support (ECS) Activity. ECS addresses one of the key constraints to economic growth in Kosovo: access to credit for high-growth potential small and medium sized enterprises (SMEs). The primary objective of ECS is the design, establishment, and operation of the Kosovo Credit Guarantee Fund (KCGF), a local, revolving credit facility that guarantees loan portfolios consisting of qualifying loans to qualifying borrowers. The KCGF formally launched in early 2016 as an Independent Legal Entity of the Government of the Republic of Kosovo. By the end of the project, FMI will facilitate the transition of the loan guarantee portfolio to a stable and permanent entity, managed 100% locally. The goal is to create 5,000 jobs, increase the SME share of GDP, see interest rate and loan size competition among banks, and ultimately achieve a 10-year target of €400 million in fresh private bank capital loaned to SMEs. FMI is also implementing a comprehensive marketing, outreach, and awareness program designed to bridge the gap between banks and the SME community, including training banks on better credit analysis procedures, and assisting SMEs on preparing better financial statements.
FMI worked extensively with the Bulgarian National Securities
Commission (BNSC), the Bulgarian Stock Exchange (BSE), and other
Bulgarian financial institutions to help develop a sound securities
market in Bulgaria. FMI’s work focused on improved transparency,
integrity, and fairness among key financial institutions and regulatory
bodies. FMI drafted and revised a wide range of Securities Laws,
Ordinances, and Regulations to accelerate harmonization with EU
legislation and standards. FMI also drafted rules on international
issuance of securities and cross-border enforcement activities,
procedures for case referrals, and policies to regulate and license
brokers, investment intermediaries, and investment funds. Additionally,
FMI joined with the BSE and BNSC in 2003 to implement a series of
training programs on requirements and responsibilities under the law,
forms and procedures for reporting to investors and the Government, and
IOSCO best practices.
In Albania, FMI has assisted in the implementation of democratic
processes and market reforms through judiciary strengthening and
capital market development. In 2001, FMI conducted a series of training
programs for Albanian judges on corporate law, international business
standards, and market reforms. Prior to that, FMI implemented a project
to develop an effective stock exchange in Albania. The project focused
on developing a strategic plan for the exchange, associational
development of capital markets institutions, and development of a
clearing and settlement system.
FMI implemented a comprehensive program to assist the Romanian
Securities Commission in strengthening the legal, regulatory, and
institutional environment of Romania's capital markets to ensure
integrity, transparency, and efficiency. FMI worked with the securities
commission to promulgate market rules on clearing and settlement,
corporate disclosure, share registry, broker-dealer activities, market
surveillance and compliance, and investment companies. FMI conducted a
training needs assessment, initiated a training program for
Commissioners and staff, and implemented a nationwide program on
corporate governance, shareholder rights, and corporate finance. FMI
also operated in close coordination with partner technical assistance
projects on securities exchange development, clearing/settlement
systems, and investment funds issues.
For the Moscow Interbank Currency Exchange (MICEX) Trading System, FMI
provided consulting services and produced an analytical report
evaluating the MICEX screen-based trading system interface. FMI
analyzed the trading system features, functionality, accessibility, and
the quality of information available to traders, and provided the
implementation blue-print. Additionally, FMI assisted MICEX in its
modernization effort to provide efficient domestic and international
trading in currencies, financial instruments, and securities. The FMI
team worked with MICEX officials to plan the exchange expansion,
including an assessment of facility and trading systems needs,
regulatory policies and procedures, trading design and infrastructure,
and clearing and settlement issues. FMI also advised MICEX on areas
critical to exchange modernization: supervision, oversight of markets,
and the establishment of methods to achieve financial integrity and
For the World Bank, FMI assisted the Moldovan National Commission on
Financial Markets (NCFM) to draft and implement 36 securities
regulations based on international best practices and relevant EU
directives. FMI sought input from the Ministry of Finance, Ministry of
Economy, National Bank of Moldova, Bank Association of Moldova,
Ministry of Information Development and Ministry of Justice in
preparing these regulations. The project also included support and
outreach efforts designed to familiarize key stakeholders with the
nuances of the new regulations.