Question 1

What is Fogacoop?

Accepted Answer

Fogacoop (Fondo de Garantías de Entidades Cooperativas) is Colombia's specialized deposit insurance and guarantee fund for the cooperative financial sector. Established as a legal entity of unique nature under a special legal regime, Fogacoop protects depositors and savers of inscribed cooperative entities. Organized as a financial entity linked to the Ministry of Finance and Public Credit, it operates under the inspection, oversight, and control of the Superintendencia Financiera de Colombia. The institution exclusively serves financial cooperatives, savings and credit cooperatives, and multi-activity and comprehensive cooperatives with savings and credit sections that hold inscribed status.

Question 2

When was Fogacoop founded?

Accepted Answer

Fogacoop was created by Law Decree 2206 on October 29, 1998, as part of Law 454 of 1998, which established a new institutional framework for Colombia's cooperative sector. The institution was founded to address the need for savers and depositors in the cooperative financial sector to have a technical entity through which the Colombian State could guarantee both the stability of cooperative entities with financial activities and ensure recovery of resources for small-scale savers in the sector.

In 2018, Fogacoop celebrated its 20th anniversary, marking two decades of protecting savings for members of the cooperative financial sector throughout Colombia. The institution was established following recognition that the cooperative financial sector required specialized deposit insurance separate from traditional banking.

Question 3

Where is Fogacoop headquartered?

Accepted Answer

Fogacoop is headquartered in Bogotá, Colombia. The institution operates from its central office in the capital city, where it manages all deposit insurance operations, cooperative oversight functions, and administrative activities. As a specialized financial authority focused on the cooperative sector, Fogacoop maintains a centralized operational structure serving cooperatives nationwide from its Bogotá headquarters.

Question 4

Where does Fogacoop operate?

Accepted Answer

Fogacoop operates throughout Colombia with national coverage, protecting savers and depositors at inscribed financial cooperatives across all departments and municipalities. The institution's deposit insurance scheme covers members of financial cooperatives, savings and credit cooperatives, and multi-activity cooperatives with savings and credit sections operating throughout the country. Services are accessed through inscribed cooperative entities, which are distributed across urban and rural areas of Colombia, reflecting the extensive reach of the cooperative movement.

Question 5

What services does Fogacoop offer?

Accepted Answer

Fogacoop provides specialized services tailored to the cooperative financial sector:

Deposit Insurance System: Organization, development, and administration of the deposit insurance system for cooperative savers. Coverage for deposits and savings at inscribed cooperative entities. Payment of insured deposits when cooperatives enter liquidation. Protection specifically designed for small-scale savers in the cooperative sector.

Purchase of Obligations System: Management of the obligation purchase system for inscribed cooperatives in liquidation. Coordination of partial inventory processes by liquidators of cooperative entities.

Institutional Strengthening: Service as an instrument for strengthening the equity of inscribed cooperative entities. Administration of reserves and funds established for managing risks associated with cooperative financial activities. Support mechanisms to reduce or minimize adverse effects during cooperative financial difficulties.

Liquidation Management: Authorization for partial inventory preparation by liquidators. Monitoring and oversight of cooperative liquidation processes. Coordination with other sector authorities including the Superintendencia de la Economía Solidaria.

Administrative Functions: Management of the deposit insurance reserve and related funds. Prevention of unjustified economic benefits to members and administrators causing harm to cooperatives. Preservation of economic equilibrium and equity within the cooperative system.

Question 6

What makes Fogacoop unique?

Accepted Answer

Fogacoop represents a specialized financial safety mechanism designed exclusively for Colombia's cooperative financial sector, distinguishing it from Fogafín, which serves traditional banking institutions. This specialization recognizes the unique characteristics, risks, and social mission of cooperative financial entities.

The institution's governance includes representation from multiple sectoral authorities: the Director of the Unidad Administrativa Especial de Organizaciones Solidarias (UAEOS), the Superintendent of the Social Economy, delegates from the Ministry of Finance, presidential delegates, and a delegate from the Superintendencia Financiera. This multi-stakeholder board ensures comprehensive oversight aligned with cooperative principles and public policy objectives.

Fogacoop has successfully managed interventions and liquidations while minimizing losses to the deposit insurance reserve. The institution has implemented innovative resolution mechanisms, including asset and liability transfer arrangements that have preserved depositor funds and facilitated orderly exits for troubled cooperatives. In several cases, Fogacoop has supported cooperative reactivation, preventing the need to utilize deposit insurance reserves worth hundreds of millions of pesos.

Question 7

What type of financial institution is Fogacoop?

Accepted Answer

Fogacoop is classified as a persona jurídica de naturaleza única (legal entity of unique nature) operating under a régimen legal especial (special legal regime). It is organized as an entidad financiera (financial entity) but represents a distinct institutional category specifically created for the cooperative financial sector.

As a fondo de garantías (guarantee fund) and deposit insurer for cooperatives, Fogacoop functions within Colombia's solidarity economy framework rather than the traditional banking system. It is vinculada (linked) to the Ministerio de Hacienda y Crédito Público and operates under vigilancia (supervision) of the Superintendencia Financiera de Colombia, while serving entities primarily supervised by the Superintendencia de la Economía Solidaria. This dual oversight structure reflects its unique position bridging the cooperative sector and the broader financial safety net, making it a specialized financial system infrastructure institution tailored to Colombia's robust cooperative financial sector.

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