Nyirségi Savings Cooperative shut down
Monday, August 1, 2005, 11:48
The Nyirségi Savings Cooperative, mismanaged then bailed out by Hungary's other savings cooperatives, will shut down and its offices will be sold, a lawyer for the Hungarian Association of Savings Cooperatives (OTSZ) announced. Nyirsegi Savings Cooperative's assets will be transferred to four other savings cooperatives in the area, after which it will merge with the largest of the four, Szatmar-Beregi Savings Cooperative. Financial market regulator PSzAF earlier found Nyirsegi Savings Cooperative's management responsible for the cooperative's state. PSzAF's audit followed one by the National Saving Cooperative Institutional Protection Fund (OTIVA), a fund set up to bail out savings cooperatives in trouble, but also a kind of internal regulator. The management was removed, but OTIVA had to bail out the institution with Ft 730 million. OTIVA will recover most of that amount from the proceeds of the sale. Last year OTIVA bailed out another savings cooperative, the
Haromko Savings Cooperative, with Ft 800 million after PSZAF found severe
irregularities in its management. Haromko has elected new members on
its boards and has started consolidation since.