Togo

Case Studies

• FUCEC's, WAGES's, SYNORSEC's, and SOCODEVI's savings and credit operations

The PARMEC Law was passed by the Central Bank of West African States (BCEAO) and creates an institutional structure for mutual societies. National Finance Ministries will directly implement the law and provide details on licensing and regulation. Other MFI structures may exist in these various countries; this table discusses only the PARMEC law as passed by the BCEAO.

Definition or description of institution

Mutual and cooperative savings and

credit institutions and their unions, federations, and confederations. (See art. 3) The institution cannot have a profit-making goal, must be founded on the principles of union, solidarity, and mutual help, and must have savings and credit functions as its principal goal.

Non mutual or cooperative savings and credit institutions. (See art. 5)

Essentially small and informal microfinance arrangements that have a cooperative or mutual character but are small enough that they can formally register at a later time. (See art. 2, line 7, and art. 4 and Meagher 2002)

Guidelines & restrictions on financial services

Permitted: savings and credit, fund transfers.

Prohibited: checking. (See art. 24) Other activities are permitted with

Ministry of Finance approval.

Unknown

N/A