Credit Union Appeals To Members To Ensure Prompt Payback Of Their Loans

Minescho cooperative credit union has held its 25th Annual General Meeting with a call on members to repay their loans promptly in order not to hinder the progress of the union.

Dr Lewis Brew, chairman of the loans committee said during the year under review, a total of 314 loan applications were considered by the union and an amount of GHȼ2,521,888.50 Ghana Cedis was approved and disbursed.

He said at the end of the 2016/2017 financial year, 744 loans were outstanding giving a total cumulative amount of GHȼ3,576,788.87 Ghana Cedis.

Dr Brew said in the year however, a total amount of GHȼ3,280,811.30 Ghana cedis was received as loans repayment and this included; loan principal payment of GHȼ2,643,597.26 and interest payment of GHȼ637,214.04 Ghana cedis.

He stated that the committee would continue to educate borrowers and use all legitimate means to recover loans granted to members

On his part, the board chairman, Associate Professor William Kwame Buah announced that the union made unprecedented surplus of GHȼ533,602.34 this year, representing 279 per cent.

He said the operation income rose from GHȼ1,865,724.83 in 2016 to GHȼ2,646,089.01 in the year under review.

Prof. Buah noted that the union recorded significant change in its size as total asset decreased from 9.8 million Ghana cedis to 9.1 million Ghana cedis, representing a decline of 7 per cent.

This he said was necessary to clean the loan portfolio and to bring to bear quality performing assets in the union in line with the best practices to provide value for money.

The board chairman said Minescho also recorded a decline in the cost of income ratio of 80 per cent in 2017 as compared to 93 per cent in 2016.

He pointed out that the collapse of many financial institutions, decreased in the base rate of Bank of Ghana from 25.5 per cent to 22.5 per cent, closure of small scale mining companies, restructuring of financial institution by regulators and proliferation of financial institution in the Region were some challenges the union faced in the year under review

Amidst these challenges, Associate Prof. Buah explained that the board remained resolute and guided the executive arm of the Union and they made significant achievement over the period.

He said the board approved a five year strategic and business plan as part of requirements for Bank of Ghana Licensing.

This, the board chairman said would provide a strategic direction and focus of this noble union and was aimed at bringing them in line with best practices, goal congruence and decorum.

He expressed appreciation to individuals, cooperate institutions, especially the University of Mines and Technology for contributing to the success and growth of the union.

GNA
By Erica Apeatua Addo, GNA