CREDIT UNION INCREASES SHARE CAPITAL (GRAPHIC NSEMPA, PAGE 14, FEB 1, 2010)

By Akwasi Ampratwum-Mensah, Dormaa Ahenkro

THE share capital of the Dormaa Teachers’ Co-operative Credit Union in the Brong Ahafo Region increased from GH¢100,492.18 in 2007 to GH¢148,438.30 in the last financial year.
Consequently, a total of GH¢20,098.44 was paid to members as dividend for the last financial year.
The Chairman of the board of directors of the union, Mr Kwasi Siaw, disclosed this in his report at the 10th Annual General Meeting of the Union at Dormaa Ahenkro.
He further disclosed that at the beginning of the year under review, the total savings of members stood at GH¢966,092.72, and at the close of June 2009, members’ total savings stood at GH¢2,120,306.63, representing an increase of 119.472 per cent.
He noted that the figure would have been far more than what was realised, if members had not withdrawn part of their savings, and therefore, appealed to members to create savings withdrawals account, in order to maintain the union’s monthly contributions towards their retirement.
The chairman added that members ought to take loans, rather than withdrawing from their savings
According to Mr Siaw, the total amount given out as interest on members’ savings increased steadily for the period under review.
The chairman indicated that a total of GH¢1,520,305.12 was granted as loans to members for various purposes during the year under review.
He explained that the loans were taken for housing, education, health, transport bills and other businesses
He, however, noted that their loan recovery had not been good as expected.
On the union’s total assets, Mr Siaw revealed that at the beginning of the year under review, it stood at GH¢1,160,319.22 and that, at the end of June last year, the total assets had come up to GH¢2,460,855.59.
“It has been budgeted that, by 30th June next year, our assets will increase to GH¢3,800,000.00”, he said.
The General Manager of the Credit Union Association (CUA), Mr Emmanuel Oduro-Darko, advised that credit unions that wanted to exist as liable financial intermediaries in the years ahead should adhere to increasing its membership by opening the common bond and also encourage members and potential ones to increase their savings.
He also admonished them to introduce new products and services based on members’ needs, as well as become conscious of profitability, assets quality and capital adequacy levels.
Mr Oduro-Darko stressed that poverty alleviation was foremost on the agenda of governments of developing countries, saying, “Although the incomes of the poor may be tiny and irregular, there are many times when poor people need money that are bigger than what they have in hand”.