Credit Union posts mixed performance

The New Vision Co-operative Credit Union in Ho has posted a blend of high and low performances in 2013, its Annual Report and Financial Statement has indicated.

Mr Alphonse Senyo, Board Chairman, at the 16th Annual General Meeting (AGM), said savings appreciated by 20 per cent from Gh¢814,459.06 in 2012 to Gh¢978,479.35 in 2013.

Total assets went up 13.75 per cent from Gh¢858,500.54 in 2012 to Gh¢976,589.91 in 2013 with membership climbing up to 1342 in 2013 from 1286 in 2012. Interest accruing from loans in 2013 stood at Gh¢81,126.61 down from Gh¢102,856.53 in 2012.

“Loan delinquency was on the ascendency in the year under review. I would like members to note that if they do not honor payment of their loans, especially those at table, the union risks to incur more losses.

“Due to the interest paid on savings, the Union has experienced a net-loss in 2012-2013,” Mr Senyo said.

Mr Senyo said the greatest problem the Union had was the inability of the Controller and Accountant General’s Department (CAGD) to act promptly on the inputs it prepared.

He said measures outlined by management to shore things up included the automatic repayment of loan applications exceeding Gh¢1,000 through the CAGD.

If the amount is lower than Gh¢1,000 the borrower shall decide which mode to use in repayment, however if that borrower failed to start repayment “in the very first month,” inputs would immediately be prepared for it to be deducted by the CAGD.

Management also proposed increases in the minimum savings from Gh¢40.00 to GH¢50.00 each and shares from Gh¢ 50.00 to GH¢100.00. Mr Senyo urged members to encourage young teachers to join the union to ensure that it did not decline.

The Union, formerly the Ho Teachers Co-operative Credit Union, has now opened membership to the public hence the name New Vision Co-operative Credit Union Limited.