Madison, WI – World Council of Credit Unions, Inc. (WOCCU) announces two new projects. The first, located in Sri Lanka, will focus on Credit Union Finance Facility restructuring and is funded by a donation from the United States Department of Agriculture (USDA), under a Food for Progress Program. The second, located in the Philippines, will focus on Strengthening the Philippine Model Credit Union Network by developing a private deposit insurance facility. It is funded by a grant from the United States Agency for International Development (USAID).
For the Sri Lanka project, USDA will donate 17,780 metric tons of wheat. The proceeds from the sale of this wheat, approximately 2.7 million dollars, will be used to implement this three year credit union development program. Under this program WOCCU will restructure participating Sri Lankan financial institutions by drafting and implementing policies and procedures with special attention to loan administration; installing accounting software; providing on site professional development training; and developing financial management capacity in Sri Lanka. WOCCU will also recapitalize at least four financial institutions and support the rehabilitation of credit unions by working with and providing oversight to SANASA/Institutional Development Unit to improve its performance.
The three-year, $3.6 million Philippine project will run from December 2005 to November of 2008. WOCCU and its partner credit unions have established the Model Cooperative Network Federation (MCN) in order to partially substitute for the absence of fully functional credit union legislation, and a safety net. The MCN Federation Model is one based on a 2nd tier structure with a network of affiliated, autonomous and financially independent, "branch banking" credit unions. The unique feature of this model is that membership is combined with a privately administered formal insurance program that involves the principles of self-regulation and mutual liability. In other words, the entire capital of the network would be available to cover losses from insolvencies. The mutual liability provides the incentive for member credit unions to ensure that there is adequate and timely regulation and enforcement.
The broad development goal of the project is to establish a "private" legislative framework and deposit insurance through further strengthening of the MCN. The ultimate success of the MCN will depend on its ability it achieve operational and financial sustainability without continued external subsidy.
"We are very excited about the possibilities this new funding creates," said WOCCU's CEO Pete Crear. "The legislation developed in the new Philippines project will be critical to the uniform regulation and financial survival of cooperatives in the area. Likewise, the Sri Lanka project will be critical to the continued strengthening of Sri Lanka's post-tsunami economy." WOCCU has worked extensively in these countries in the past, both of which have been sites of former WOCCU projects.
El Consejo Mundial de Cooperativas de Ahorro y Crédito es la asociación gremial y agencia de desarrollo para el sistema internacional de cooperativas de ahorro y crédito. El Consejo Mundial promueve el crecimiento sustentable de las cooperativas de ahorro y crédito y otras cooperativas financieras en todo el mundo a fin de facultar a las personas para que mejoren su calidad de vida a través del acceso a servicios financieros asequibles y de alta calidad. El Consejo Mundial realiza esfuerzos de defensa activa en representación del sistema global de las cooperativas de ahorro y crédito ante organizaciones internacionales y trabaja con gobiernos nacionales para mejorar la legislación y la regulación. Sus programas de asistencia técnica introducen nuevas herramientas y tecnologías para fortalecer el desempeño financiero de las cooperativas de ahorro y crédito y profundizar su alcance comunitario.
El Consejo Mundial ha implementado 290 programas de asistencia técnica en 71 países. A nivel mundial, 57,000 cooperativas de ahorro y crédito en 105 países atienden a 217 millones de personas. Obtenga más información sobre el impacto global del Consejo Mundial en www.woccu.org.