Guatemalan CUs to introduce CU ratings agency

MADISON, Wis. - Through a five-year, US$3.2-million development project funded equally by the Consultative Group to Assist the Poorest (CGAP) and the Federacion Nacional de Cooperativas de Ahorro y Credito (FENACOAC) and its 28 member credit unions, the World Council of Credit Unions has developed the WOCCU Credit Union Ratings Agency to certify and rank credit unions. The overall purpose of the development project is to expand protection of member savings. The ratings and certification agency will establish and maintain prudent operations standards by monitoring, rating, certifying and offering specific economic and marketing benefits to credit unions that meet the agency's soundness criteria. Guatemalan credit unions currently participating are UPA, Parroquial Guadalupana, Guayacan Union Popular, Tonantel, Coatepeque and San Jose Obrero. By 2002, FENACOAC will require all of their member CUs to be certified and rated to qualify for continuing FENACOAC membership. In related news, Guatemalan credit unions are currently researching the feasibility of setting up a share guarantee fund that will potentially insure members' deposits up to 100,000 quetzals (US$12,000). CUs will pay premiums to support the guarantee fund. An individual credit union's premium will be determined by the rating from the WOCCU credit union ratings agency.