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Business News of Thursday, 29 October 2009 |
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Legon Co-operative Union to operate as bank
Accra, Oct. 29, GNA - The University of Ghana Co-operative Credit Un= ion Limited is to operate as a quasi-bank, to provide various financial servi= ces including educational and Christmas savings with higher returns to member= s. A three-year strategic plan, detailing the various processes and guidelines leading to its take-off, has been developed and management is tasked to work towards its implementation. Professor Dominic Edoh, Board Chairman of the Union, disclosed this at its Annual General Meeting held in Accra on Thursday. Professor Edoh said the move was to give loans at low rates as well as offer high returns on savings to ensure that members who were mostly work= ers at the University had access to adequate capital to carry out their activities. He said the 2008/2009 financial year had been an eventful one for th= e Co-operative citing the global economic crisis and high crude prices, whi= ch had serious consequences on its operations. He said despite the challenges, the Co-operative maintained its loan= s interest at 14.63 per cent to provide affordable credit facilities for members to improve their livelihood. On the gains made, Professor Edoh said the Co-operative had posted a=
net profit of GH¢608,199.04 representing 66.5 per cent over the previou= s year's proceeds. He said the asset size of the Co-operative grew by 33.16 per cent, raising its value to GHc¢6,953,498.77 while its membership also increas= ed from 3191 to 3,422 in the year under review. He said in view of the significant gains, the Co-operative had paid a dividend of GH¢0.14 to shareholders. The Board Chairman said to avoid liquidity shortfalls, management ha= d created a buffer to be supported by part of the dividend to ensure continuous availability of cash to honour loan requests. He said management was not oblivious of the difficult times ahead an= d projected to achieve a GH¢1,327,327.60 income and GH¢459,727.60 as pr= ofit for the 2009/2010 financial year. He commended management for their hard work over the years and shareholders for keeping faith with the Co-operative. He also commended the authorities of the University of Ghana for the= ir assistance to the Co-operative. 29 Oct. 09
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