The GCC Cooperation Council (GCC) is one of the world’s biggest, most influential and most controversial global economic, political and military organizations.
The GCC is a sovereign organization comprised of 27 member states and is a global military alliance, which aims to counter and defeat “rogue states”, including Russia, China, Iran, North Korea, Iraq and Syria.
This article outlines how to join a cooperative credit association.
Get Started in the GCC.
Cooperatives in the Greater Gulf Cooperation are one of three global cooperative credit associations.
The first and oldest of these, Credit Suisse, was established in 1973 by the international banking firm Credit Suiser AG.
The second is the Gulf Credit Union Network (GCTVN) and the third is the GCC Credit Union Group (GCTG), which is a new credit association formed by a consortium of 50 banks.
Co-op credit unions are an integral part of the GCC’s efforts to combat “rogues states” including Russia and China.
This is a guide for the first time on how to form a cooperative Credit Union in the region.2.
Find an Account with a Cooperative Credit Union.
Cooperative credit unions have to apply to the GCC, which oversees credit associations in the Arab world.
They have to fill in forms and meet certain conditions, and they have to adhere to a code of conduct that has to be followed.
If they meet these criteria, the GCC can approve or deny their membership.
The regulations of co-op lending vary from region to region.
A co-operative credit association can apply to form an account with any bank or credit institution that accepts its services.
However, the application to join an account is mandatory and must be completed by the co-operators.
The GCC Cooperative Credit Association is not required to offer a banking service or accept credit cards.
However the bank must ensure that a bank-based bank account is available for all members.
The account must be approved by the GCC and a bank must provide a bank guarantee.3.
Apply for a Cooperative Loan.
Co-op loan is a loan that the bank makes to members of the cooperative credit group.
A loan is one way for the bank to finance cooperative activities.
The loan can be made in the form of a credit card or an overdraft.
A cooperative credit organization must deposit the funds in a bank account or in a special account in the name of the organization.
The bank is the guarantor of the account.
This deposit must be made within six months after the cooperative begins the activity.
If the bank is not willing to provide a guarantee, the bank can apply for an overdraw in the event of default or an interruption in the activity of the co‑operative.4.
Find a Loan Partner.
Cooperation credit unions must have a minimum of 100 members to operate a cooperative loan.
A new cooperative loan must be applied for every three years.
This requirement ensures that the cooperative’s activities are monitored and maintained by the institution that the loan is to be used for.5.
Apply to a Bank for a Loan.
The first step in forming a cooperative lending institution is to contact the bank that provides services to a cooperative.
The cooperative must submit an application to the bank for an account.
The application includes details on the cooperative, the activities it supports and the terms of the loan.
The banks website also provides the bank’s name and phone number.
The deposit and the details of the transaction must be sent to the cooperative.6.
Sign a Agreement.
The cooperative must also submit an agreement with the bank stating that the loans will be made exclusively to the co‐operative members.
This agreement can be signed by the cooperative member or a third party.
The agreement must be filed with the GCC office in Dubai.7.
Apply For a Cooperative Agreement.
A cooperative loan is made for every cooperator.
It is not possible to make a loan to everyone.
This process must be undertaken by a bank that is part of a cooperative group or is affiliated with a cooperative, and must ensure a minimum number of coop members.
If no bank is willing to sponsor a cooperative account, the cooperative may apply to establish a cooperative bank account.
A Cooperative Loan Agreement requires the cooperative to:A.
Assign a percentage of its profits from cooperative activities to the cooperators accounts;B.
Provide financial support to the institution to maintain the cooperative bank;C.
Accept the bank guarantee;D.
Make the account available for co-operation activities and to the extent permitted by law;E.
Pay all copartners contributions and all interest;F.
Make available the funds for the cooperative accounts expenses;G.
Pay interest on the loan;H.
Maintain and repay all loan funds to the fund;I.
Continue to pay all interest and principal for at least six months;J.
Maintaining and paying the interest