Savings company – instrument for the development of the region
Cooperative savings companies (CSS) loans in Latvia represent only 0.11 TP1T of total financial operations while in other parts of the world KKS provides 20-60% of them. As a result of this situation and how to increase the number of these societies, on 16 June, experts discussed the seminar organised by the National Rural Network in the Ozolnieki People's House.
Inesis Feiferis, Chairman of the Board of Governors, emphasizes that, who controls our money, it controls us. It is therefore essential to expand THE CTR network in Latvia because “unlike savings companies, banks do not return the money they have paid back to the economy, but rather use deposits to repay syndicated loans to parent banks. It does not benefit Latvian regions.
He also stresses that even in 2012, the European Economic and Social Committee acknowledged that the positive impact of the cooperation had been seen during the financial crisis when no cooperative bank had been bankrupt.
At the end of the last year, Latvia has a total of 74 KKS with assets of eur 728 million, while there were only 32 co-operative societies with an asset value of not even 23 million. “The assets of Lithuania are 36 times higher than the assets of Latvian KKS, although the population in Lithuania is only 1.45 times higher than for us,” says I. Feiferis. It should be noted that in December last year there were 2.9 million inhabitants in Lithuania and 2 million in Latvia.
A number of clarifying questions were asked by the leaders of the third post-asset group “Allau family” Chairman Erikam Choder and the leader of the Lima KKS “Metsapole” group in the production process, Mr Rihards Strengam.
“The great farmers who were not even up to date were actively involved in the establishment of our society, they did so in a patriotic manner, knowing that they could help the small businesses of their municipality and also the people,” explains. Choker. “But when we grew up muscles and the ability to lend 3, 5 and 10 thousand euros, we became interested in a growing range of entrepreneurs, ensuring the availability of working assets at THE 8% loan rate,” the leader of the “Allau family” is revealed.
Eric Chodger finds that positive cooperation IN KKS “Allau family” is also formed by the Latvian Rural Consultation and Education Centre (LLCC): “we are serving the entire Sigulda municipality, but we are hard to reach because we are in Allahs, where, for example, the sigulian is difficult to get. I am therefore pleased with the cooperation with THE LLCC Sigulda Office, which will renting the premises to our work from July, allowing it to be closer to customers. '
Rihards Strenga also agrees that THE CTR should be designed so that loans at reasonable interest are available in a wide range of segments – domestic, consumer credit, negotiable assets. Unfortunately, THE process of establishing THE CCS is not as fast as i would like. “Even if you are a group of 20 natural persons who can start to form CTR and you also have municipal support, the necessary documents have been prepared and the Financial Capital and Market Commission (FCMC) is submitted, until a real loan is issued at least two years later, as THE FKTK scrupulously investigates the documentation by giving it back to the smallest inaccuracies,” says R. Strenga.
The solution for accelerating the process would be the adoption of amendments to the Law on CTR, providing for the right of savings companies to merge with the establishment of a cooperative stock company central (KKSC), which also operates in Lithuania. The Ministry of Agriculture and the Latvian Local Government have already expressed support for this idea, but proposals for amendments are currently being prepared by the Ministry of Economics.
The information was prepared by:
Ilze Ruthenberg-Berzins,
LLC Public Relationship Specialist
http://laukutikls.lv/nozares/lauku-telpa/raksti/krajaizdevu-sabiedriba-instruments-regiona-attistibai