GUARD AGAINST DELINQUENCY IN OPERATIONS (PAGE 40)

STORY: Vincent Adedze, Nyankpala

THE Northern Regional Manager of the Credit Union Association (CUA), Mr Samuel Anyigba, has entreated management of the University for Development Studies (UDS) Staff Co-operative Credit Union, to guard against delinquency in the operations of the union.
He noted that such acts had the tendency of crippling credit unions as “it denies them of vital interest income and makes less money available to lend to deserving members, thereby making them lose confidence in the system”.
Mr Anyigba stated this during the annual general meeting of the union at Nyankpala in the Tolon-Kumbungu District of the Northern Region.
The meeting enabled both members and management of the union to take stock of its activities during the 2006/2007 financial year.
Mr Anyigba expressed concern about the relatively low percentage of total average assets being recorded by the union as compared to the CUA standards.
“By CUA standards, credit unions are supposed to record at least 20 per cent of their total average assets as interests on loans, but your society recorded 17.7 per cent, which shows that some borrowers failed to repay their loans on schedule,” he stated.
According to him, the union’s profitability ratio should have been six per cent minimum of its total average assets “but you scored 4.80 per cent of your total average assets”.
Mr Anyigba was, however, happy that the union’s savings balance had increased from GH¢181,737 to GH4262,620 for the year under review.
“Ideally, it is expected that members will keep building up their savings figure to enable them to contract heavy loans for productive purposes,” he noted.
The manager urged the union to ensure a sound capital base for its sustenance.
“You must, therefore, be guided by a growing membership rate of at least 25 per cent, regular savings by members, prompt loans repayment, operational cost efficiency, creation of reserves payment of attractive interests on members’ savings and appreciable dividend on shares,” he stressed.
The Board Chairman of the union, Mr Thomas Azuure, announced that more than GH¢200,000 was given out as loans to its members in 2007 while its membership grew from 337 in 2003 to 662 in 2007.
He stated that acquisition of land at Chang-Naa-Yilli was a top priority.
Mr Azuure, however, urged all UDS staff to join the union, adding that “we have more than 1,000 names on the payroll”.
“There has been a continuous demand from members for bigger loans that could enable them to undertake productive ventures but rampant and unplanned withdrawal of savings has reduced our lending ability,” Mr Azuure further noted.
According to him, the board had increased the minimum monthly savings from GH¢5 to GH¢10.