If the reforms to the Banking Law that are being discussed in the Congress are approved, cooperatives will have to start reporting information in their loan portfolios.
Legal initiative number 5157which is pending final approval, proposes, among other changes, including in the Credit Registration Information System (SIRC by its initials in Spanish) information from financial institutions that are not yet sending reports.
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EDITORIAL
In Costa Ricaastate run bankand anagricultural cooperativehave once again been rescued from insolvency and the mismanagement of their managers, using, as it would not have been possible any other way, money belonging to taxpayers.
The conversion to biofuel is feasible in agribusinesses who have their own waste production the raw material needed to generate it.
The return on investment calculation of $9 million in less than four years was a deciding factor in the Cooperativa Agroindustrial de Productores de Palma Aceitera (Coopeagropal) introducing a clean energy program.
"The biggest investment is the installation of a giant digester using German technology, in which the organic matter from the plant wastewater is processed."
The financial potential of cooperatives in Guatemala will revolve around the development of renewable energy projects.
The groups belonging to the Guatemalan Confederation of Cooperative Associations, RL (Confecoop), have projects, funding and implementation programs for the construction of small hydroelectric plants, whose owners are cooperatives.
"We have made the final adjustments to the investment plan and contributions to the main supply, and we hope to present the project in June," said Rodolfo Orozco, executive director of Confecoop to Prensalibre.com. However, Orozco did not say how many mini plants will be built.
Regulators are preparing legislation to supervise credit unions.
The new rules apply to all credit unions associated with Micoope (brand which brings together the Credit Unions Federated Cooperatives throughout Guatemala).
Lorena Alvarez from Elperiodico.com.gt writes, "The proposal seeks to integrate financial cooperatives which provide services within the regulated system, as in most Latin American countries, said Eduardo Soto, supervisor of the regulations development department of the Superintendence of Banks (SIB).”
Small and medium companies from the hydropower sector as well as solar energy and waste treatment sectors is where participation is visualized.
Guatemalan cooperatives intend to increase potential in order to be involved in financing micro and small business involved in renewable energy, waste recycling and water treatment.
The greatest potential customers of cooperatives are municipalities, most of whom have needs to be resolved in these areas.
Two legislative bills were submitted to Congress for a tax exemption on investment income.
Mariano Rayo, chairman of the Economy Committee in Congress, reported that the initiative has a favorable opinion from the Superintendent of Banks, but not from the Ministry of Public Finance or the Superintendent of Tax Administration.
L. Alvarez wrote in elperiodico.com.gt: "The sponsors of both initiatives seek to add a new subsection to Decree 26-96 of the Law on Financial Product Taxes and its reform, decree 44-2000, where it is established that savings and credit cooperatives are exempt from paying this tax."
The rural development proposal for 2009 is for $108 million and is expected to generate between 150 to 200 thousand jobs.
Prensalibre.com reports: "One of the main projects is to channel $37 million (288 million quetzales) to housing programs.
The proposals includes plans to invest another $9 million (70 million quetzales) for the planting of corn, $10 million (80 million quetzales) for the irrigation and harvest of vegetables, and $15 million (120 million quetzales) for storage centers and financing."
Advised by the World Credit and Savings Council and based on the experience in other countries, Fenocoac is interested in establishing alliances with banks.
The alliances would be in the sense that the members of the cooperatives can make deposits or withdrawals from bank branches countrywide.
Elio Armando Estrada, president of the of Administrative Council of the National Federation of Credit Unions (Fenocoac), added that even though they have their own ATM's they are also looking to join the national network, using debit cards and issuing a local and international credit card.
Credit Unions iin Guatemala are looking for new members, after being in the non-traditional financial market with 800 thousand members for 45 years.
Oswaldo Oliva, national manager of the Credit and Savings Cooperatives of Guatemala (Fenacoac) commented that the cooperatives are hoping to add 1.5 million new members in the next four years.
Oliva said yesterday during the presentation of the advertising campaign to attract members that the cooperatives have been the vehicle of development for thousand of people for years.