Savings insurance coverage for cooperatives was increased to $25 million

Enrique Valderrama Jaramillo, executive president of the Colombian Federation of Savings, Credit and Financial Cooperatives (Fecolfín)reported that the sector’s savings insurance coverage was increased and unified to $25 million per saver.

In addition, the premium rates that will be charged by risk level were reduced by 10% in the first year and 30% in the second, with average savings of $7,000 million and $20,000 million, respectively.

According to the manager, since the creation of Fecolfín, 10 years ago, the union has been insisting on rationalizing the cost and coverage of this insurance due to the disproportion with the Guarantee Fund for Financial Institutions, Fogafín, and the “clear discrimination between cooperative savers and the traditional financial sector”.

Before this decision, coverage for savings and credit cooperatives was up to $12 million pesos, and for finance companies up to $20 million.

“In fact, that was one of the reasons for the creation of Fecolfín. For this reason, we say today, satisfied, that it is an achievement of the union, and of the support and vision of the current director of Fogacoop, María Elena Grueso, who listened to us in multiple meetings, analyzed our arguments, took advice and we achieved this result of a coverage of $25 million pesos, per saver, with benefits for more than 4.5 million associates, without differentiating whether the saver is from a savings and credit or financial cooperative,” said Valderrama.

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