Loans delinquency bane to credit Union development

Agona Swedru, June 22, GNA - The Swedru Teachers' Co-operative Credit Union has put in place loan delinquency and control measures, to retrieve all outstanding debts owed by recalcitrant members improve its financial position.

The measures include placing incessant phone calls on members whose loans were delinquent, and calls to remind them of the due dates of their payment schedules.

The rest were issuance of warning letters to members to serve demand notice, while defaulters have been arraigned as a compelling and last resort to retrieve the amount owed the Union.

Mr John Nana Boadu, Chairman of the Board of the Directors of the Swedru Teachers' Co-operative Credit Union announced this at the 15th Annual General Meeting (AGM) of the Union at Agona Swedru, in the Central Region.

The Chairman hinted that the board had decided to use local FM stations and widely circulated newspapers to name and shame loan defaulters apart from the court action.

He stated that these were part of the strategic plans adopted by the Board, Loans Committee and Management of the Union to retrieve the debts.

Mr Boadu said assets of the Union increased 13.8 per cent from GHȼ8,720,435.38 to GHȼ9,931,458.57 in the 2016 fiscal year.

According to the Chairman members savings increased by 18.7 per cent from GHȼ7,320,532.45 to GHȼ,690,031.77 as at June 2016, whilst shareholders funds showed significant increased by 36 per cent from GHȼ674,899.78 to GHȼ7, 969.07.

He said the net loans granted increased from GHȼ5,626,313.00 to GHȼ5,894,966.27 June 30, 2016.

Mr Boadu stated that with regard to share holdings, the Board said a minimum of GHȼ200.00 to re-qualify members of the union had not achieved the desired result.

He said only 1,075 members had a share balance of GHȼ200.00 and above totalling GHȼ 353,599.44, adding that a total of 7,309 members were having shares below GHȼ200.00.

The Chairman said as part of the efforts to render its corporate responsibility, the Union donated GHȼ3,140.00 to various institutions in the catchment areas.

Mr Victor Kwesi Andam, Chairman of the Loans Committee said in order to increase the share capital of the Union, the committee in collaboration with the Board of Directors instituted share top-up raffle to urge and motivate both public and members to improve its capital.

He said the winners of the raffle were given 32 flat screen TV, home theatre, four burner gas stove, electric irons and spraying machines.

Mr Andam said recommended the intensification of education on the youth to cultivate habit of savings as well as traders, business men and women in the jurisdiction of the Union to increase savings mobilisation. GNA