SAN JOSE, Costa Rica - Representatives of the World Council of Credit Unions (WOCCU) mounted an effort to head off anti-credit union sentiments here calling for revoking the tax exemption.
The contingent, which included officials from WOCCU and the Alabama league, visited with Costa Rican government officials, including President Oscar Arias Sánchez, at the request of the Federación de Cooperativas de Ahorro y Crédito de Costa Rica R.L. (FEDEAC), WOCCU’s Costa Rican member organization. The Alabama League and FEDEAC are partner organizations through WOCCU’s International Partnership program.
According to WOCCU, attacks by Costa Rica’s banks are the result of rapid growth by the country’s credit unions, which have increased their market share from 3% to 12% in terms of assets. The country’s credit unions also are growing membership at a rate of roughly 15% per year and have evolved from small storefronts to more sophisticated and competitive financial institutions, WOCCU said. A few credit unions exceed some Costa Rican banks in terms of asset size, and the banking industry has been lobbying the country’s government, presenting the cooperatives as an untapped source of tax revenue, raising concerns among both credit unions and FEDEAC officials. “No matter how successful they are and no matter where they’re located, credit unions are member-owned financial cooperatives and should not be taxed,” said Pete Crear, WOCCU’s president and CEO who headed the group that met with Pres. Sánchez. “Our goal is to help Costa Rican lawmakers understand the differences between credit unions and banks and then legislate appropriately.”(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
