Half a million mexicans could lose their savingsBy Elliot Bullman
583 thousand Mexicans face losing their entire savings owing to poor management.
The National Commission for the Protection and Defense of Users of Financial Services (Condusef) reported that 97 savings banks throughout the country are at risk of bankruptcy and with that, of causing the 583 thousand users in the country to lose their savings.
The Commission revealed that these Cooperative Savings and Loan Societies (SOCAP) are not in a position to operate due to poor resource management.
According to the opinion issued on Condusef’s website, they are in a clear situation of insolvency or potential bankruptcy, or they did not allow to be evaluated in a timely manner in the terms established in the Law, so they cannot operate or capture resources from their partners.
Most of these Cooperative Savings and Loan Societies operate in places where there is no access to a bank and are mainly located in Jalisco, Oaxaca, Michoacan, Veracruz and Puebla.
In Mexico City there are only two institutions that are unable to continue operating: Caja Solidaria Jilotepec and Popbox.
Condusef’s head Mario Di Constanzo says the only way to protect people’s money is to ensure that the savings banks that are bankrupt are absorbed by larger institutions.
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