Share Issue By Electrification Cooperatives

Rural electrification cooperatives in Costa Rica may be treated differently from cooperatives in general, for financing their projects through debt issuance.

Monday, March 4, 2013

Crhoy.com reports that "The Attorney General's Office told the Superintendency of Securities (SUGEVAL), that it could not measure these entities using the same scale as it does for credit unions."

The SUGEVAL should issue specific regulations so that rural electrification cooperatives can participate in the Securities Market, seeing as some of the provisions of the Act for Strengthening and Modernization of Public Entities in the Telecommunications Sector "extends to rural electrification cooperatives or affects them "... "It will require supervision other than that provided by the Cooperative Development Institute (Instituto de Fomento Cooperativo)."

The Comptroller "considers that the Act makes an implied repeal of the principles of cooperation for these cooperatives in order to help meet the objectives of the national electricity system and in particular in the areas where they are established in order to provide services to the population."

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