Credit Unions granted loans totalling C390bn

Takoradi, Jan. 14, GNA - Credit Unions in Ghana granted loans totalling 390 billion cedis to their members between June 30, 2005 and June 30, 2006, and invested 160 billion cedis in the financial market within the period.
Mr Emmanuel Darko, General Manager of Ghana Cooperative Credit Unions Association (CUA) Limited, announced this at the Seventh Annual General Meeting of Axim Road Community Cooperative Credit Union (ARCCU) at Takoradi at the weekend.
He noted that the efficient and effective mobilisation of rural and urban savings would positively support Government's efforts to create funds for local investment.
Mr Darko said in addition, it would support the credit needs of the productive poor in less endowed communities where people were vulnerable to economic hardship.
He explained that the poor used financial services not only for business investment but also investment in health and education, to manage household emergencies and other cash needs.
"A combination of savings and credit with education is the only means to influence the poor towards their own future development," he added.
Mr Isaac Sam Cudjoe, Chairman of the Board of Directors of the Union, said every member was expected to purchase a minimum of 60 shares valued at 5,000 cedis per share.
He said available records indicated that share capital of members was 22 per cent below the expected figure for the union to attain a strong capital base adding; "The expected share capital is 922 million cedis but share purchased is 207 million cedis".
Mr Cudjoe said loans granted to members increased by 2.7 billion cedis in 2006 and the total accumulated loans about 6.3 billion cedis. He said total savings deposit in 2006 was over three billion cedis, about 150 per cent increase over savings in 2005.
The union's total savings deposit is about 7.9 billion cedis. Mr Edward Ankomah, Western Regional Auditor, presenting the audit report for 2006, said the union made a net profit of 557,349,376 cedis in 2006 as against 198,601,707 cedis in 2005.
He said the Gross profit for 2005 was 992,602,672 cedis and 1,569,819,424 cedis for 2006.
Mr Ankomah said interest paid by the union on members' savings totalled 274,300,000 cedis in 2005 and 249,228,380 cedis in 2006. He said 60,118,000 cedis was paid as dividend on members' share in 2005 and 55,734,937 cedis in 2006.