Since 1st January 2008, when the association agreement of the co-operative credit institutions (CCIs) came into force with the Central Agency, that is the Co-operative Central Bank, it forces cover through its depositors’ guarantee scheme or other beneficiaries of the obligations of the associated CCIs and the full redemption or repayment of all the obligations of the associated CCIs, including their off-balance sheet obligations and undertakings.
The obligations of the Central Agency and the associated CCIs constitute joint and several undertakings and the obligations of the CCIs linked with the Central Agency are fully covered by the guarantees of the Central Agency.
The above ensures the better operation of the Cooperative Movement and creates the necessary preconditions for further growth.
The association arrangements of the CCIs with the CCB do not constitute a mother company-subsidiary relationship or the creation of a group of companies. They simply constitute a special relationship only for the purposes of harmonisation with the acquis communautaire. As a consequence, all the associated CCIs continue to retain their autonomy and independence. They continue to be autonomous legal entities and to have their own administrative and management bodies, as required by the Cooperative Companies Law.