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31.03.2007 General News

Credit Unions require innovative policies for self-reliance

By myjoyonline

The Chairman of the Volta Regional Chapter of the Credit Union Association (CUA) Ghana Limited, Mr Stephen Q. Dzokpata, has called on Credit Union Societies to evolve a reliable, responsive and innovative policies and products to enable them become self-reliant economically.

He said the growing popularity and steadfastness of credit union operations in the economy was a challenge to its managers to advance pragmatic strategies to shore up their operations towards wealth creation.

Mr Dzokpata was delivering the keynote address at the third Annual General Meeting of the Hohoe Community and Association of Small Scale Industries Co-operative Credit Union (HOCACCU) at Hohoe.

He said Credit Unionism has debunked the general notion that savings was exclusive to the affluent who could afford to put aside their superfluity as savings.

Mr Dzokpata entreated credit union members to desist from frequent withdrawal of their savings as the practice erodes the reserve base of the scheme.

He advised management to embark on membership drives, savings mobilization and build more reserves to keep in business.

Madam Fortune Abusuasem, Board Chairperson of HOCACCU said its savings increased to 402.8 million cedis from the previous 156.2 million cedis within its financial year posting a growth 61 percent.

She said currently its membership strength has risen from 197 in 2005 to 302 now.

Madam Abusuasem said new products on the block this year included welfare saving and group lending, child education package and "smart-smart" products.

She observed that credit union operations throughout the world over have contributed immensely to the development of national economies while maximizing the welfare of their members.

Mr Godfred Adanuti, Volta Regional Manager of CUA presented a cheque for 100 million cedis to HOCACCU for disbursement as micro-financing facility by the national Association for their creditable performance over the period.

He said the facility would only be increased when the recovery rate was high and urged members to have a programme before assessing the loan.

Members who distinguished themselves received certificates and prizes.