Thousands of members recover funds through Cosede while larger depositors face a longer wait for full repayment.
Payouts begin for small savers
Since August 29th, depositors of the shuttered CREA Savings and Credit Cooperative have started receiving their money through the Deposit Insurance Corporation (Cosede). The insurance covers members with balances of up to $32,000, the maximum guaranteed for cooperatives with assets above $80 million.
Cosede authorized $63.8 million for payouts, and the process is being carried out through BanEcuador and the Jardín Azuayo Savings and Credit Cooperative. Payments are staggered according to the last digit of members’ ID numbers, though beginning September 12th there will be no such restriction.
To collect, members must show their ID and a copy of it, and may choose between cash, certified checks, or opening an account at one of the designated financial institutions.
Impact of CREA’s closure
The collapse of CREA in late July led the Superintendency of the Popular and Solidarity Economy (SEPS) to suspend operations, triggering Cosede’s deposit insurance on August 13th. Following the end of the transfer of assets and liabilities, SEPS ordered forced liquidation on August 21st.
In total, 72,730 members qualify for insurance-backed refunds under Cosede. The measure is expected to provide relief to thousands of households and small businesses affected by the sudden closure of the cooperative.
Larger depositors face delays
For those with deposits above $32,000, the situation is more complex. Under the Exclusion and Transfer of Assets and Liabilities (ETAP) program, the accounts of 2,060 depositors were moved to 18 different cooperatives. This allows them to access their money through their new institutions.
But another group of 421 depositors — representing just 0.56% of CREA’s membership — were not included in the transfer. Their deposits, which total $66.7 million, will only be repaid after the sale of CREA’s assets during liquidation.
Superintendent Christina Murillo Navarrete emphasized that the ETAP selection was carried out transparently. She told lawmakers on August 27 that cooperatives reviewed the portfolios anonymously before deciding which accounts to absorb.
Three avenues for repayment
Authorities have established three mechanisms for deposit recovery:
- ETAP transfers: More than $88.9 million in accounts above $32,000 was transferred to other cooperatives, giving affected members access to their funds.
- Cosede insurance: Small depositors up to $32,000 are being paid since August 29th through BanEcuador and Jardín Azuayo.
- Liquidation process: The remaining 421 depositors not covered by ETAP will receive a guaranteed $32,000 now, with the balance dependent on asset sales.
Officials estimate that liquidation could take around eight months. Until then, many of the largest depositors must wait to see how much of their money will ultimately be recovered.
I have $144 in Crea. Jardin Azuayo informed me only amounts between $300 and $32,000 are being paid out!
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