ABSTRACT
The objective of the stabilization program was to help credit unions become competitive in the marketplace, financially independent, secure in their capitalization, and economically viable. Financial assistance was provided to help restore asset values and accelerate the write-down of credit unions’ uncollectible loans and losses. The experiences of credit unions in Guatemala can be a road map for carrying the principles, policies, discipline, and tools developed to help credit union movements around the world. Guatemalan credit unions traditionally relied on international donors for external capital as a source of loan funds for their members. The new credit union model helped credit unions become more competitive, financially independent, and secure. As credit unions modified their outdated policies and controls, they earned the financial support which helped them to write-down non-performing assets and replenish their institutional reserves. Financial assistance for stabilization purposes was provided to the credit unions in the form of non-interest-bearing one-year loans.
