ARCCU makes 557,349,376 cedis profit

Takoradi, Jan. 15, GNA - The Axim Road Community Cooperative Credit Union (ARCCU) made a net profit of 557,349,376 cedis in 2006 as against 198,601,707 cedis in 2005, Mr.Edward Ankomah, the Western Regional Auditor, told the 7th Annual General Meeting of the union at Takoradi at the weekend.

Presenting the audit report for 2006, he said the gross profit for 2005 was 992,602,672 cedis while the net for 2006 was 1,569,819,424 cedis.

Interest paid by the union paid on members' savings totaled 274,300,000 cedis in 2005 and 249,228,380 cedis in 2006. A total amount of 60,118,000 cedis was paid as dividend on members' share in 2005 and 55,734,937 cedis in 2006.

Mr. Isaac Sam Cudjoe, Chairman of the Board of Directors of the Union, said every member of the union was expected to purchase a minimum of 60 shares valued at 5,000 cedis per share.

He said loans granted to members increased by 2.7 billion cedis in 2006 and the total an accumulated loan is about 6.3 billion cedis. Members saving deposit in 2006 totaled over three billion cedis, about 150 per cent increase over savings in 2005. Total savings deposit is about 7.86 billion cedis.

Mr. Emmanuel Darko, General Manager of Ghana Cooperative Credit Unions Association (CUA), said the efficient and effective mobilisation of rural and urban savings would support the government's efforts to create funds for local investment purposes.

It will also support the credit needs of the productive poor in less endowed communities where people are vulnerable to economic hardship. Mr. Darko said between June 30, 2005 and June 2006, credit unions granted loans amounting to 390 billion cedis to their members and invested 160 billion cedis in the financial market as at June 30, 2006.