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Business & Finance | Apr 15, 2004

Govt worried about excess liquidity in the system -Aliu

GNA

Kumasi, April 15, GNA- The Vice President, Alhaji Aliu Mahama has observed that one of the major challenges facing the government is its inability to mobilise all excess liquidity in the system. He said currently, about 60 per cent of the money in circulation in the country was in the homes of people.

He has therefore, asked credit unions to intensify their efforts and expand their activities, especially to the doorsteps of people in rural communities to enable the people to cultivate savings habit and expand their businesses.

These were contained in an address read for him at the 13th biennial conference of the Ghana Co-operative Credit Unions Association (CUA) in Kumasi on Thursday.

The conference which is being attended by delegates from all the 250 credit unions in the country, has the theme: "Credit Unions: A Tool For Wealth Creation".

Alhaji Aliu said lack of facilities had reduced the production capacities of most farmers and businessmen to the subsistence levels, adding that, effective mobilisation of rural and urban liquidities would help the government to mobilise resources to assist such people.

He commended the idea of credit unions at work places, churches and communities and said it would enable workers to cultivate the habit of saving, while at the same time helping them to obtain credit facilities.

Alhaji Aliu said the formation of credit unions was a clear demonstration of unity and partnership in business among people at the local levels.

He pledged the government's support towards the credit unions and gave the assurance that the government would support the passage of the Credit Union Bill, which was yet to be put before Parliament to promote effective and efficient operations of credit unions in the country. Mr Sampson Kwaku Boafo, Ashanti Regional Minister in an address read for him, urged management of credit unions to be transparent in their dealings to sustain the interest of members.

He also urged them to assist in the development of their areas of operations by supporting education, health and sanitation activities. Mrs Aba Smith, chairman of the CUA, said the association's savings increased from 140 billion cedis in 2002 to 206 billion cedis in 2003. Its membership also grew from 120,000 in 2002 to 550,000 in 2003. 15 April 04

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