Government guarantee for all deposits placed with credit co-operatives

The Government guarantee will also be extended to deposits placed with credit co-operatives registered with the Registry of Co-operative Societies.

1. The Government guarantee will also be extended to deposits placed with credit co-operatives registered with the Registry of Co-operative Societies.
2. Currently there are 41 credit co-operatives providing thrift and loan services to more than 200,000 members. The co-operatives are regulated under the Co-operative Societies Act which was recently amended and passed by Parliament in order to enhance standards of governance and elevate prudential requirements to protect the interests of these depositors. The amended Act shall come into operation by 20 Oct 2008.
3. The guarantee will take immediate effect and will remain in place until 31 December 2010. All deposits and subscription capital placed with these 41 credit co-operatives will now enjoy protection from the Government. 
4. Credit co-operatives are reminded that they should not misuse the Government guarantee to take on activities without regard for the risks. The Registry of Co-operative Societies will continue to regulate the credit co-operatives to ensure that they meet the governance and prudential requirements under the Act.
   
   MCYS Media Release No: 56/2008
   Date Of Issue: 16/10/2008