In the view of Julio Cesar Portillo, secretary of the board of the National Commission for credit unions in El Salvador and CEO of Co-Andes de R.L. , "... the reform presented to the Legislature, seeks to impose on savings and loans cooperatives a framework of regulation and supervision which is exclusively for private financial companies and for-profit institutions such as banks. "

Elsalvador.com reports that "...Among the reforms proposed by the Superintendency of the Financial System is the concept that when the sum of assets, deposits or contributions of a cooperative exceed $10 million they must submit quarterly financial statements to the SSF and monthly reporting of portfolio loans, deposits and other obligations. They must also submit a regularization plan and failure to meet deadlines would result in them incurring penalties and revocation of operating permits. "

The bill proposes that cooperatives be classified according to their assets, ranging from those with equity of less than $1 million to those with more than $10 million and that the fee for supervision is 0.025% per annum on equity, paid in monthly installments. 

Source: elsalvador.com

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