Cooperativa CREA Faces Forced Liquidation: What Cuenca Expats Need to Know About Deposits, Credits, and Legal Realities

CUENCA, AZUAY – July 30, 2025 – Cooperativa CREA, a prominent financial institution with deep roots in Cuenca, has officially entered a process of forced liquidation and suspension of operations as of July 29th. This significant development, announced by the Superintendency of Popular and Solidarity Economy (SEPS), has sent ripples of concern through its over 100,000 members, many of whom are now seeking clarity on the fate of their deposits and investments. For the expat community in Cuenca, this situation raises particular questions, especially for those whose residency visas were tied to investments within the cooperative.

The decision to liquidate CREA stems from its failure to meet minimum solvency standards and non-compliance with an intensive supervision program imposed by SEPS. According to Christina Murillo Navarrete, Superintendent of Popular and Solidarity Economy, the cooperative's solvency indicator fell below 50% of the required minimum. She cited a "lack of control, disproportionate growth, and inadequate management of the cooperative's financial migration" as key factors, leading to a serious compromise of institutional sustainability. The former manager of CREA, in a poignant testimony titled "My Lament for a Destroyed Vision," recounted the cooperative's proud journey from 326 members and $27,000 in assets in 1998 to a robust institution with over 100,000 members and nearly $300 million. However, he alleges that the downfall began in March 2024, following his departure and the arrival of a new administration, which he accuses of treating the cooperative as "booty," leading to instability, alleged corruption, and the suspicious "fire sale" of portfolios.

For expats whose visas were dependent on an investment in Cooperativa CREA, the situation presents additional complexities. The legal implications for visa validity are still uncertain, and any associated legal fees to adjust immigration status will likely need to be covered personally. The long-term legal process for liquidation could potentially take up to seven years. Assemblyman Adrián Castro has expressed significant concern over the situation, highlighting the impact on family economies and calling for urgent clarification regarding the structural weakness and controls within the Popular and Solidarity Economy system. While SEPS maintains that the broader system remains stable (reporting 17% solvency and 37% liquidity), this isolated case underscores the importance of due diligence in financial dealings. Affected individuals can contact the temporary administrator, Luis Miguel Cabrera (luis.cabrera@seps.gob.ec / 0998754643), for inquiries. If you decide to contact the temporary administrator directly, take into account his service is legally required to be in the Spanish language.

For those seeking to understand the financial health of cooperatives or alternative investment options for visa purposes, it is advisable to consult independent legal and financial experts who can provide tailored advice given the evolving landscape.

The forced liquidation of Cooperativa CREA presents complex challenges, especially for those with significant deposits or visa concerns. While official channels state no attorney is needed, legal expert Sabrina Candela advises that proactive representation can be crucial for ensuring timely and guaranteed payment, particularly for amounts exceeding the $32,000 COSEDE coverage.

Don't leave your financial future to chance. Attorney Sabrina Candela is offering a free, no-obligation quotation to assess your specific situation and discuss how her legal team can assist you through this process.

Please note: The complexity and estimated costs of representation may vary, especially for amounts above $32,000 USD.