Credit Unions issued ¢390 billion in loans for a year

Credit Unions in Ghana granted their members loans totaling ¢390 billion between June 30, 2005 and June 30, 2006, and invested ¢160 billion in the financial market within the period.

The General Manager of Ghana Cooperative Credit Unions Association (CUA) Limited, Mr Emmanuel Darko, announced this at the Seventh Annual General Meeting of Axim Road Community Cooperative Credit Union (ARCCU) at Takoradi at the weekend.

He noted that the efficient and effective mobilisation of rural and urban savings would positively support Government's efforts to create funds for local investment.

Mr Darko said in addition, it would support the credit needs of the productive poor in less endowed communities where people were vulnerable to economic hardships.

He explained that the poor used financial services not only for business investment but also investment in health and education, to manage household emergencies and other cash needs.

"A combination of savings and credit with education is the only means to influence the poor towards their own future development," he added.

Chairman of the Board of Directors of the Union, Mr Isaac Sam Cudjoe said every member was expected to purchase a minimum of 60 shares valued at ¢5,000 per share.

He said available records indicated that share capital of members was 22 percent below the expected figure for the union to attain a strong capital base adding; "The expected share capital is ¢922 million but share purchased is ¢207 million".

Mr Cudjoe said loans granted to members increased by ¢2.7 billion in 2006 and the total accumulated loans about ¢6.3 billion.

He said total savings deposit in 2006 was over ¢3 billion, about 150 percent increase over savings in 2005.

The union's total savings deposit is about ¢7.9 billion.

Mr Edward Ankomah, Western Regional Auditor, presenting the audit report for 2006, said the union made a net profit of ¢557,349,376 in 2006 as against ¢198,601,707 in 2005.

He said the Gross profit for 2005 was ¢992,602,672 and ¢1,569,819,424 for 2006.

Mr Ankomah said interest paid by the union on members' savings totaled ¢274,300,000 in 2005 and ¢249,228,380 in 2006.

He said ¢60,118,000 was paid as dividend on members' share in 2005 and ¢55,734,937 in 2006.

Source GNA