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Saturday, February 15, 2014

Coopera Update

Dear Family and Friends,

A couple of months back I posted about a hunger strike that was taking place in our main park by investors in a local credit union.

Here is the link:  Coopera Hunger Strike

At that time I told you I report how the situation turned out.  People who had $30K or less in the credit union received all of their money back around September of last year.

We learned recently from Gringo Tree that the decision has been announced.

Here is how the remainder is being distributed:

Partial Payouts Announced for Coopera Members

Ecuador's Superintendency of Popular and Solidarity Economy (SEPS) announced Tuesday a third phase of payouts to members of Coopera, the failed Cuenca financial cooperative. Coop members with accounts ranging from $30,001 to $62,500 can collect most of their money at Cuenca branches of Banco del Pacifico until April 1.

Accounts with amounts of $30,001 to $40,000 will be repaid $30,000, while accounts with $40,001 to $62,500 will repaid at a 75% rate.

SEPS also announced that there would be a fourth phase of payouts for larger accounts but provided no details of dates or the amounts to be paid.

According to SEPS, the new phase of payouts beginning today will reimburse 368 members, leaving less than 300 large account holders unpaid. It is believed that about 60 North American expats are among the group of 368.

Attorney Gustavo Qutio, who represents unpaid Coopera members, said he was happy for those who will receive partial repayment but complained about the government's formula that penalizes large account holders.

As the late Paul Harvey would say, "Now you know the rest of the story."


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