Former Soviet Union
and Eastern Europe

CURRENT PROJECTS

Ukraine Capital Markets Development
FMI is currently implementing the Capital Markets Project to assist Ukraine in developing a vibrant and effective financial sector. This effort will promote sustained economic growth and reduce the costs and risks to a sound pension system. The Project’s activities are organized around three major components: (1) strengthening the institutional capacities of Ukraine’s regulators to provide prudential oversight and supervision of the non-bank capital markets; (2) developing appropriate financial instruments for portfolio investment, especially for contractual savings institutions; and (3) strengthening the capacities of pension fund providers, including regulators, pension fund managers, financial intermediaries, actuaries, accountants, and auditors. It also envisions several cross-cutting activities, including improvement of the legal framework, increased coordination of regulatory activities, and upgrades to the information technology of the regulators. In addition, FMI will help strengthen key capital markets institutions, provide education and training to financial intermediaries, and increase public awareness of the new pension system. Period of Performance: 2005-2009.

For more information go to: www.capitalmarkets.kiev.ua

PAST PROJECTS

Ukraine International Business Standards & Corporate Governance
This USAID funded project focused on transforming Ukraine’s corporate culture and had five integrated components: (1) work with businesses and non-governmental institutions to promote international disclosure standards and the free flow of reliable financial information; (2) improved government support for corporate governance through assistance to the National Bank of Ukraine and work with leaders in the Verkhovna Rada to promote legislative reforms; (3) design and implementation of seminars and workshops on investor dispute resolution, shareholder rights, and enforcement for regulators and judges; (4) improved corporate governance in the private sector through assistance and training for directors, managers, and executives across multiple sectors; and (5) development of Ukraine’s first curriculum on corporate governance, which was implemented at leading law and business schools throughout the country. Period of Performance: 2001-2004.

Bulgaria Capital Markets Regulations Project
Under this USAID project, FMI served as the principal advisor to the Bulgarian Securities Commission (BSC) and assisted the Commission to strengthen its institutional capacity to regulate the capital markets. FMI also worked closely with other Bulgarian institutions (Finance Ministry, Central Bank, Parliament, Bulgarian Stock Exchange, and self-regulating organizations) to develop the legal and regulatory framework for the securities markets. For the BSC, FMI prepared procedures manuals for the various departments and provided the required systems training; designed and implemented a computerized system for monitoring stock trades and debt transactions; recommended, developed, and trained a new office devoted to accounting reform and financial disclosure; and drafted and secured passage of a major reform of the Bulgarian Securities Law. For market participants, FMI prepared and distributed a corporate governance manual and conducted multiple seminars on financial disclosure and accounting reform; worked with the Finance Ministry to harmonize Bulgaria’s capital markets framework with European Union standards; evaluated the Bulgarian government’s proposal to consolidate financial markets regulation under a unified regulator; and worked with several SROs to promote shareholders’ rights and investor education. Period of Performance: 2000-2003.

Albania Legal Systems in Support of Market Reform
For USAID, FMI assisted in the implementation of democratic processes and market reforms in Albania by strengthening the judiciary. The project team designed and conducted courses on corporate law to train judges in international business standards. Additionally, FMI worked closely with the local Magistrates' School, providing it with institutional support to enable it to improve the quality of its courses and programs. Court administration training was provided to improve the overall efficiency of the court system. A database of Albanian laws and court rulings was compiled and made available to the public for research. Period of performance: 2001-2002.

Ukraine International Accounting Standards (IAS) and Corporate Governance
As an amendment to its Capital Markets Task Order for USAID, FMI worked with eighty Ukrainian companies to assist them in improving accounting standards, financial reporting and corporate governance, and in meeting requirements of the securities law. The FMI team also instituted comprehensive corporate governance and shareholders' rights program. FMI published and distributed three million copies each of four brochures on capital markets, and provided technical input to over a dozen radio and television programs. Period of Performance: 1999-2001.

Ukraine Capital Markets Development
For USAID, FMI provided technical assistance to develop the Ukrainian legal and regulatory framework for capital markets. FMI experts drafted major pieces of legislation, which led to the establishment of the securities market, creation of an independent securities commission, and reform of the company law. The project, which was extended three times, focused on institutional development of the securities commission by establishing effective market monitoring and enforcement rules and procedures, accounting reform, financial disclosure, and education and training programs. FMI also provided policy advice to senior government officials on clearance and settlement systems, registries, and depositories, and conducted a landmark financial sector assessment, focusing on the legal, regulatory, and judicial requirements for an environment conducive to economic growth, investment, and poverty alleviation. Additionally, the team carried out comprehensive corporate governance and shareholders’ rights program; published and distributed 3 million copies each of four brochures on capital markets; and provided technical input to over a dozen radio and television programs. Period of Performance: 1996-2001

Unemployment System Restructuring for Ukraine
For USAID, FMI drafted advisory opinions and amendments on employment insurance. The review included examining public administration, government budgeting, tax law, and welfare economics, to determine possible social and legal repercussions. FMI evaluated and recommended improvements to the country's employment data collection system, including conducting a pilot labor sample survey with revised sampling procedures. FMI examined Ukraine's employment services and job skills programs. FMI consultants streamlined the steps to approve benefits while reducing fraud, integrated the nation's employment service offices and created a labor market database providing information on available and prospective employment opportunities. Period of Performance: 1997-1998.

Health Insurance Reform in Georgia
For the World Bank, FMI conducted an evaluation of Georgian health insurance legislation in order to support the development of a State Medical Insurance Company (SMIC). FMI drafted regulations governing the organization, structure, and functioning of SMIC. FMI also prepared regulatory framework legislation covering the private insurance industry in Georgia, which addressed issues such as licensing, incorporation, capitalization, patient's rights, adverse selection, and basic terms/conditions of health care providers. Period of Performance: 1997.

Romanian National Securities Commission Project
For USAID, FMI assisted the Securities Commission in strengthening the legal, regulatory, and institutional environment of Romania's capital markets to ensure integrity, transparency, and efficiency. FMI's lawyers, financial analysts, and capital markets specialists worked with the Romanian SEC to promulgate market rules on clearing and settlement, corporate disclosure, share registry, broker-dealer activities, market surveillance and compliance, and investment companies. FMI accomplished an institutional and training needs assessment, initiated a training program for Commissioners and staff, and implemented a nationwide program on corporate governance, shareholder rights, and corporate finance. Period of Performance: 1995-1998.

Moscow Interbank Currency Exchange (MICEX): Exchange Expansion
FMI assisted MICEX, the leading financial exchange in Russia, 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 customer confidence. Period of Performance: 1995.

Moscow Interbank Currency Exchange (MICEX): Trading System
FMI provided consulting services and produced an analytical report evaluating the MICEX screen-based trading system interface. The project analyzed the trading system features, functionality, accessibility, and the quality of information available to traders, and provided the implementation blue-print. Period of Performance: 1995.

Albania Stock Exchange Development
For USAID, 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. The project was discontinued due to civil unrest in Albania in March 1997.