|Central Lending Facility (CFF)|
WHAT IS CENTRAL FINANCE FACILITY (CFF)?
Central Finance Facility (CFF) is a central fund where SACCOs invest. It is a banking service package that MUSCCO operate and matches with the financial services requirements of various types of SACCOs within the system. MUSSCO uses the CFF as its primary source of generating income.
OBJECTIVES OF CFF
The main objective of CFF is to act as a financial intermediary for all SACCOs affiliated to MUSCCO by;
WHY THE CFF?
By pooling funds and jointly investing, it negotiates higher returns for SACCOs
EXISTING CFF PRODUCTS
The following financial products are currently on offer in CFF;
STATUTORY RESERVE DEPOSIT
SACCOs are encouraged to invest 10% of their total assets at any point in time with MUSCCO to provide a direct match with statutory reserves of a SACCO. Market rate of interest is offered to this account.
LOANS TO SACCOs
The MUSCCO Credit Committee considers loan application forms with reference to the CFF Loan Policy.
STATEMENT OF ACCOUNTS
All SACCOs’ transaction with the CFF will be evidenced by regular monthly statements.
Policy Makers Symposium on Growth and Development of Savings and Credit Cooperatives in Malawi
Date: May 27 – 28, 2013
Venue: Bingu International Conference Centre
Symposium Theme: Embracing Financial Cooperatives as a...