Puerto Rico's cooperativa system—state insured credit unions—can withstand the island's fiscal crisis even though the financial institutions heavily invested in government bonds, regulators said Friday.
Puerto Rico has more than 100 cooperativas insured by the territory's Corporation for the Supervision and Insurance of Cooperatives (COSSEC). That is in addition to the island's credit unions that are insured by the NCUA.
Some cooperativas have a high concentration of island "special investments" and could face solvency issues, the regulators and fiscal experts said.Island regulators estimated that five of the cooperativas could face liquidity issues, but they added that COSSEC and larger credit unions would cover all the credit unions' obligations.
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