a1306: GOH takes steps to regulate Cooperatives/Popular Banks/Credit Institutions (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: MKarshan@aol.com

A Step Toward Normalizing the Legal Status of the Haitian Cooperative
Movement: The Ministry of Planning Presents a Draft Law
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Port-au-Prince, March 7, 2002 -(AHP)- The Ministry of Planning  and External
Cooperation presented to the press on Thursday a draft law covering the
constitution, organization, control and oversight of the Savings and Credit
Cooperatives (CEC), commonly known as Caisses Populaires (Popular Banks) or
Mutuelles d'Epargne et de Credit (Mutual Savings and Credit institutions).
Under the proposed bill, a cooperative is an autonomous association of
people voluntarily getting together to satisfy their common economic, social
and cultural aspirations and needs by means of an enterprise whose property
is held in common and where power is exercised democratically.

Article 8 of the proposed law  foresees the creation of an office called
"the General Inspectorate of Popular Banks" (IGCP) charged with overseeing
compliance on the part of the Savings and Credit Cooperatives and the
federations of cooperatives with the applicable legislative  and regulatory
provisions and to sanction any incidents of documented non-compliance.

The Inspectorate will be under the administrative authority of the Bank of
the Republic of Haiti. Its mission will include the examination of operating
conditions of the cooperatives and the cooperative federations and to keep a
watchful eye on their financial situation.

It will also be responsible for granting the popular banks authorization to
operate as they open their doors.

The draft bill foresees the creation of an oversight committee for the
Savings and Credit Cooperatives (CEC) comprised of three members.

At the event organized for the presentation of the draft law, Mr. Marc
Bazin, Minister of Planning, said that this governmental initiative seeks to
regularize the cooperatives that are piling up (pilullent) in the four
corners of the country.

Marc bazin stated that he hoped the implementation of the law on the
functioning of the cooperatives will cause some of the popular banks to
close their doors. The requirements of this law might also cause them to
join together as federations of cooperatives of savings and credit, he
added.

The Planning Minister gave the assurance that consideration will be given to
the recommendations resulting from the national symposium on the
cooperatives within the context of the Haitian financial system.

This symposium takes place Friday, March 8 at the Ritz Kinam II.

AHP March 7, 2002 2:00 PM
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