The Loan Delinquency
THE LOAN DELINQUENCY OF ABUCAY MULTI –PURPOSE COOPERATIVE MEMBERS: ITS CAUSES AND IMPLICATIONS ON THE COOPERATIVE’S OPERATION
Chapter I
THE PROBLEM AND ITS BACKGROUND
Introduction
According to Johnston Birchall (2004) in his book entitled “Cooperatives and the Millennium Development Goals”, Cooperatives, as economic enterprises and as self-help organizations, play a meaningful role in uplifting the socio-economic conditions of their members and their local communities. Over the years, cooperative enterprises have successfully operated locally owned people-centered businesses while also serving as catalysts for social organization and cohesion. With their concern for their members and communities, they represent a model of economic enterprise that places high regard for democratic and human values. As the world today faces unstable financial systems, increased insecurity of food supply, growing inequality worldwide, rapid population growth and increased financial needs, it is increasingly compelling to consider the model of economic enterprise that cooperatives offer. Despite of their willingness to extend help to the members, the cooperatives was generally a failure.
As stated by the Cooperative Development Authority, it was loan delinquency that ultimately killed the 50,000 cooperatives in the country. Presumably, these cooperatives have folded up and no longer operating. At present, there are 18,000 cooperatives in the country who are suffering from loan delinquency.
Abucay Multi-purpose Cooperative is one of those cooperatives who face a great problem regarding loan delinquency. Headed by Mayor Ana D. Santiago, AMPC started its operation on Aug. 13, 1998. It provides loan services like business and personal
assistance loan to its members. Its objective is to improve the quality of life of the members and their families and the community. In its 13 years of existence, their loan delinquency rate is increasing yearly. Delinquent accounts
Chapter I
THE PROBLEM AND ITS BACKGROUND
Introduction
According to Johnston Birchall (2004) in his book entitled “Cooperatives and the Millennium Development Goals”, Cooperatives, as economic enterprises and as self-help organizations, play a meaningful role in uplifting the socio-economic conditions of their members and their local communities. Over the years, cooperative enterprises have successfully operated locally owned people-centered businesses while also serving as catalysts for social organization and cohesion. With their concern for their members and communities, they represent a model of economic enterprise that places high regard for democratic and human values. As the world today faces unstable financial systems, increased insecurity of food supply, growing inequality worldwide, rapid population growth and increased financial needs, it is increasingly compelling to consider the model of economic enterprise that cooperatives offer. Despite of their willingness to extend help to the members, the cooperatives was generally a failure.
As stated by the Cooperative Development Authority, it was loan delinquency that ultimately killed the 50,000 cooperatives in the country. Presumably, these cooperatives have folded up and no longer operating. At present, there are 18,000 cooperatives in the country who are suffering from loan delinquency.
Abucay Multi-purpose Cooperative is one of those cooperatives who face a great problem regarding loan delinquency. Headed by Mayor Ana D. Santiago, AMPC started its operation on Aug. 13, 1998. It provides loan services like business and personal
assistance loan to its members. Its objective is to improve the quality of life of the members and their families and the community. In its 13 years of existence, their loan delinquency rate is increasing yearly. Delinquent accounts