Courtesy
Yesterday, a bill was presented to the Legislative Assembly to dissolve the el Instituto Salvadoreño de Fomento Cooperativo (INSAFOCOOP) and redistribute its functions among various state entities. The initiative, promoted by the Ministerio de Economía (MINEC), aims to promote cooperativism for each productive sector.
The proposal, called “Ley de Disolución, Liquidación y Traslado de Funciones del Instituto Salvadoreño de Fomento Cooperativo”, stipulates that INSAFOCOOP will be dissolved and liquidated within a maximum period of six months after the appointment of a Liquidation Commission. This commission will be composed of INSAFOCOOP’s current president, a representative of the Banco Central de Reserva (BCR) and a delegate from each entity that will assume the institute’s functions.
This “Liquidation Commission” will be in charge of administering and legally representing INSAFOCOOP during the liquidation process, as well as carrying out an exhaustive inventory of the assets, liabilities, personnel and property of the institute. In addition, it will have to formulate a work program to ensure an orderly and efficient transition of functions to the new entities.
Likewise, credit unions, as well as insurance companies, will be supervised by the Banco Central de Reserva and the Superintendencia del Sistema Financiero.
Once the liquidation process begins, the functions related to agricultural, livestock, fishing and farming production will be transferred to the Ministerio de Agricultura y Ganadería (MAG). The Comisión Nacional de la Micro y Pequeña Empresa (CONAMYPE) will assume the management of industrial and agro-industrial production. Housing cooperatives will be under the jurisdiction of the Ministry of Housing.