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15.02.2007 Business & Finance

Techiman credit unions record surplus

By GNA

Six credit unions in the Techiman Municipality recorded a total net surplus of 800.1 million cedis in 2006 as against 631.1 million cedis in 2005, representing a 27 per cent increase.

They are Abotareye, Ebenezer, Abosomakotare, Standard, Area Teachers and Trinity Co-operative credit unions.

Mr. James Okyere, Techiman Municipal Co-operative Officer disclosed this at the seventh annual general meeting of Abotareye Union at Techiman.

Mr. Okyere said the total savings of the six unions increased from 9.9 million cedis to 13 million cedis, representing 32 per cent, while outstanding loans jumped from 7.2 billion cedis to 9.2 billion cedis in 2006, a 57 per cent increase.

Total shares of the six unions also increased to 1.1 billion cedis as against 772.7 million cedis in the previous financial year, while their total assets consolidated as at June 30 last year stood at 16.7 billion cedis as against 12.6 billion in 2005, he added.

On the income and expenditure accounts of the Abotareye Union, Mr. Okyere said it posted 85,503,701 cedis in 2006 as against 57,920,549 million cedis in the 2005 fiscal year.

The municipal co-operative officer said the total income of the union was 421,882 million cedis in 2006 as against 292.171 million cedis recorded in 2005 while the operational expenditure increased from 234,250,987 cedis to 336, 379,037 cedis.

Mr. Thomas Tuffour, outgoing Chairman of Abotareye Union said membership increased from 742 in 2005 to 784.

He said the Union granted a total of 1,247,691,250 cedis to 258 members as loans to embark on agricultural activities as well as on education, business, transport, social and housing.

He said the Union's share capital increased from 73,715,000 cedis to 169,910,000 cedis during the period under review.

Mr. Opoku Mensah, Brong-Ahafo Regional Field Officer, emphasized that credit unions had been established to alleviate poverty amongst members whom he urged to sacrifice to raise the financial position of their Unions.

Mr. Joseph Awiti Takyia, Manager of Abotareye, said the although the union did not intend to prosecute loan defaulters the high rate of competition in the system demanded court action against them in order to stabilize the Union's financial position.

Mr. A. A. Yeboah, Chairman of Brong-Ahafo Regional Chapter of Credit Unions Association (CUA) suggested that government loans to beneficiaries be channelled through credit unions to ensure prompt repayment.

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