Homeowners' cooperatives will be able to receive the status of acceptability in the future, which will allow them to qualify for the European Union (EU) and state support, as stipulated in the draft regulation developed by the Ministry of Agriculture (MF) to assess the conformity of cooperative societies submitted for interdepartmental coordination.
In the annotation of the project ZM, it was stated that domestic cooperatives have not yet been able to obtain compliance status, but in Latvia several cooperatives were created in this area, resulting in status with agricultural producers, small processors of agricultural products, producers and producers of small alcoholic beverages . This status confirms that the cooperative operates in accordance with the basic principles and nature of cooperation. The draft resolution contains the criteria that the cooperative must fulfill in order to obtain the status of acceptability in the field of housing construction.
In general, the draft resolution mainly maintains the norms contained in the rules for assessing the compliance of cooperative agricultural services societies and forestry cooperatives. As a result, co-op powers will continue to be able to require support from the EU and the state, as well as several supporting tools in the Rural Development Program 2014-2020. Similarly, they will still have access to other support tools, such as credit guarantees, government support for loans for the purchase of working capital.
Compliance status will be granted for one year.
The conditions come into effect on July 1, 2019. In order to ensure that cooperatives are familiar with regulatory changes in a timely manner and to ensure the implementation of 2019 activities in accordance with established criteria, the government is expected to make a final decision on these provisions in early 2019.