The Co-operative Credit Societies have as their main object the extension of credit and the provision of services to their members in accordance with the co-operative principles of mutual help and assistance. They are registered Co-operative Societies and comply with the Co-operative Societies Laws and Rules. The Co-operative Credit Societies main function is the acceptance of deposits and granting of loans to their members in all segments of the population in their particular area of operations. They are non-profit motivated organisations, each governed by its own Committee elected from among its members who are persons living in the primary society’s area of activities.
Administration and supervision
The institutions that form the Co-operative Movement are supervised by their own competent Supervisory Authority (CSA) - the Co-operative Societies' Supervision and Development Authority. The said Authority is responsible for their registration, promotion and supervision. The CSA monitors the CCSs through regular inspection visits, attendance of meetings and through the audit reports from the Audit Service of Co-operative Societies.
The audit of the co-operative societies is performed by the Audit Service which is an independent legal entity under the Co-operative legislation and whose audit costs are covered by the inspected co-operative societies by means of annual audit fees. It is governed by a five-member Committee whose members are appointed by the Council of Ministers. Two of its members are nominated by the Pancyprian Co-operative Confederation.
The Co-operative Societies are classified under the following categories:
(a) Primary Level
Consists of village Co-operative Credit Societies, Co-operative Savings Banks, Co-operative Stores, Medical Treatment Co-operatives, Fruit Growers, Wine Making Co-operatives, Olive Oil Producers, Agricultural Products Marketing, Handicrafts and others whose members are natural persons.
(b) Secondary Level
Comprises Co-operative Societies of which even one of their members is a Primary Level Co-operative Society. This level is usually made up of Unions of the primary level co-operatives as well as a number of individual members involved in the same general activity. They include Unions involved in Marketing, Wholesale and Retail Trade, Production and Distribution etc.
(c) Tertiary Level
Comprises Co-operative Societies of which even one of their members is a Secondary Level Co-operative Society. It is made up of amalgamations, manufacturing and trading units of a diverse nature, including foreign trade, vessel chartering, air freighting and others. Included in this category is the Pancyprian Co-operative Confederation and Co-operative Central Bank.
Pancyprian Co-operative Confederation
Its main purpose is to protect the interests of the Co-operative Movement as well as to act in an advisory capacity to the Department of Co-operative Development and as a watchdog to ensure that the formulation of Co-operative policy is in tune with internationally accepted co-operative principles.
The Bank and the individual Co-operative Societies form the Co-operative Movement, which is considered financially sound financially and very competitive in terms of both quality and price of services offered. No village in Cyprus is without a co-operative credit institution or a consumer co-operative. The total membership of the co-operatives in Cyprus has exceeded the 500,000 mark. It is obvious that the vast majority of the population of Cyprus (estimated at 700,000) is served, in one way or another, by the multiple activities of the Cyprus Co-operative Movement.
The Co-operative Movement is operating in the Banking, Consumer, Marketing and Manufacturing and Trade and Services Sectors:
(a) Banking Sector
The Banking Sector which includes all the Co-operative Credit Societies and Co-operative Savings Banks is the mainstay of the Co-operative Movement of Cyprus. Through this sector the self-financing of the co-operators and co-operative institutions is achieved. It is exactly for this reason that special attention is given to the banking Sector of the Movement. The Bank, together with the 359 member Co-operative Credit Societies, form the second largest banking group in terms of total assets. The amount of deposits administered by the Co-operative Movement as a whole reached the CY£4 billion mark, a 32% share of the total amount of local deposits held by banking institutions in Cyprus. The total amount of loans of the Co-operative Movement as a whole today exceeds CY£3.3 billion and represents a 33% market share.
(b) Consumer Sector
The Consumer Sector includes all the co-operative consumer stores and supermarkets which co-exist and operate alongside the private stores within the free enterprise socio-economic system of Cyprus.
(c) Marketing and Manufacturing Sectors
The Marketing and Manufacturing Sectors include all the Co-operative Unions and Organisations of manufacturing, marketing, including exports, distribution and handling of agricultural and other products. The contribution of all these societies to the Cyprus economy is of great importance.
(d) Trade Services Sector
The Trade Services Sector includes all the co-operatives which have trade and supply of services as their main activities, (e.g. computer, marine, medical and insurance services etc). In the sector of imports, especially commodities of agricultural usage, the co-operatives play a key role in the island’s economy.
(a) Financing of Farmers
The Bank, in collaboration with its member-societies which are co-operative credit institutions, is satisfying to a great extent the financing needs of the agricultural people in loans, both short-term and long-term. The Bank is also the biggest importer and distributor of fertilisers with a percentage of around 80% of such total imports to Cyprus. Its share in the total imports of other goods of agricultural usage is also quite significant.
(b) Wholesales Supply Union
The contribution to the economy of the two wholesale Supply Unions “ESEL-SPOLP” and “SPEAL” is also worthy of note. These Unions supply the co-operative consumer stores, which are their members, with goods in substantial quantities valued to many millions of Cyprus pounds.
(c) Wine Industry
The Cyprus co-operatives are also very well established in the Wine Industry. The “SODAP” Co-operative Winery is alone handling and marketing around 45% of the total production of grapes processed each year by the Cyprus Wine Industry. It is also a major exporter of wines and spirits.
(d) Stock Exchange Sector
Following
the commencement of the Cyprus Stock Exchange the
Co-operative Movement, in the context of its unending efforts to adapt
and expand, decided to enter the field of stock exchange investments
and securities business activities.
To this end, “Lefkoniko” Securities Company (Holding
Company of the Group) was established under the provisions of the
Company Law with an authorised share capital of CYP25 million.
Lefkoniko
then established “Demetra” Investment Company
(Demetra Ependitiki) with an authorised share capital of
CYP20,6 million.
Subsequently “Demetra” was converted in to a public company through
the issue of an additional 180 million shares of CYP1,00 each.
“Lefkoniko
Ependitiki” has since formed a Stock Broker Limited Liability
Company which operates as a securities dealer authorised to transact
stock exchange business on the floor of the Cyprus Stock Exchange.
The Company’s investment policy aims at achieving medium and
long term high yield returns through a highly diversified portfolio
made up of shares, warrants, rights, Government stocks or any other
movable property auctioned at the Cyprus Stock Exchange or at any
other authorised Stock Exchange of a foreign nation.
For
further information on the Co-operative member
societies of the Bank please refer to the Co-operative Development
Department’s site at the following URL:
www.cssda.gov.cy
[General
Information] [Services]
[Credit Cards] [New
Developments]