Cooperative Savings and Credit Unions in Latvia

Abstract

Cooperative Savings and Credit Unions (CSCUs) in Latvia are formal cooperative financial institutions operating on financial market. CSCUs provide basic financial services—savings, loans and money transferring—to their members at reasonable price. CSCUs are mutual help organizations, which mostly serve unbankable people. CSCUs are the key social enterprises and microfinance institutions on Latvian financial market. Financial cooperation in Latvia has long history. CSCUs (historically also called savings societies, credit cooperatives) were widely spread and well developed in Latvia before the II World War, but in 1940 had to cease their operation. CSCUs network was renewed in 1995 after Latvia had regained its independence. Since that time, CSCUs provide necessary services to the people who are not interested or able to obtain financial services in other credit and financial institutions. At the end of 2014 Latvian CSCUs network united 32 CSCUs, more than 26,000 members and almost 23 MEUR in assets.