The Partners for Financial Stability (PFS) Program was launched in late-1999 to help complete reforms necessary to instill well-functioning financial sectors in the eight Central and Eastern Europe (CEE) countries that have since joined the European Union. The PFS Program aimed to fill remaining gaps in the institutional development of the financial sector through regional integration and cooperation, selective technical assistance, the practical application of lessons learned from sharing regional best practices, and the adoption of international standards.

In 2005, the PFS Program was expanded into the countries of Southeast Europe (SEE), and in 2007 to the countries of the former Soviet Union (NIS). The goal of the program, however, remained the same — to promote regional and global integration of financial systems through the sharing of experience, and supporting cooperation. To achieve this goal, the PFS Program worked with financial market participants in Central and Southeastern Europe and Eurasia in order to accelerate financial market development based on best practices and international standards.

PFS Program activities were demand driven, and included a cost-sharing element on the part of local institutions. They were designed not only to provide technical expertise to address financial sector challenges common to all countries in the region, but also to promote lasting cooperation and linkages. Facilitating the sharing of experience and knowledge, the PFS Program promoted the practical application of lessons learned since 1990 in building key financial sector institutions and the underlying legal/regulatory framework so that sound financial policies and practices could be adopted and effectively implemented.

The PFS Program provided a wide range of assistance working in collaboration with both private and public financial sector institutions, including: accounting/audit associations, central banks, commercial banking associations, economic faculties/universities, finance ministries, judicial authorities, regional financial sector groups, regulatory authorities, research institutes and stock exchanges. The substantive program areas covered under the PFS Program included: accounting/audit, banking/bank supervision, capital market development, corporate governance/market transparency, financial sector research, insurance, pension reform/regulation and prevention of money laundering. PFS Program activities included: (i) seminars and workshops to address financial sector technical issues and policy challenges; (ii) professional exchanges to promote dissemination of best practices and sharing of institutional experiences; and (iii) grants to support research and projects addressing specific financial sector issues. The PFS Program was unique in that it provided a mechanism for the sharing of information and experiences among public and private sector financial institutions throughout CEE, SEE and Eurasia. By sharing best practices, promoting the adoption of international standards, and developing linkages with and between international and regional institutions, the PFS Program was able to further the development of the financial sector in all three regions. By the time PFS I ended in 2009 it had reached almost 7,000 financial sector specialists from over 150 public and private sector financial institutions in 29 countries, providing assistance, and developing long lasting professional relationships.

Funded by USAID, PFS II, launched in 2009, was a three-year regional program that built upon EWMI’s prior work in the financial sector while addressing some of the key challenges posed by the global financial crisis in the partner countries in Southeast Europe and Eurasia. The PFS II Program supported financial sector development by bringing together regional players from partner and mentor countries to address regional challenges, promote the adoption and implementation of international best practices, and to share experience and lessons learned. Under a subcontract with Deloitte Consulting, USAID’s implementing partner for PFS II, EWMI assisted with the development of the Financial Sector Benchmarking System (FSBS) and facilitated regional knowledge sharing and institutional capacity building through the design and implementation of conferences and seminars.

PSF I and II operated in the following countries:

• Albania
• Armenia
• Azerbaijan
• Belarus
• Bosnia
• Bulgaria
• Croatia
• Czech Republic
• Estonia
• Georgia
• Hungary
• Kazakhstan
• Kosovo
• Kyrgyzstan
• Latvia
• Lithuania
• Macedonia
• Moldova
• Montenegro
• Poland
• Romania
• Russia
• Serbia
• Slovak Republic
• Slovenia
• Tajikistan
• Ukraine
• Uzbekistan