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Nyankpala, Ghana – Board of Directors of the SARI Workers’ Cooperative Credit Union have reported an increment of 10 percent of the Union’s total asset from Ghc1,100,675.58 as at 30th June 2016 to Ghc1, 215,505.40 in June ending 2017.
The Union also recorded a decrease in its loan delinquency ratio as at its last annual general meeting from 47 percent to 15 percent though this is still higher than the Credit Union Association’s standard of 5 percent.
“The amount of loans disbursed in 2016 was Ghc567,242.00 and Ghc528,200.20 in 2017″Chairman of the Board of Directors of the SARI WCCU, Mohammed Mutari, disclosed these at the Union’s 27th Annual General Meeting at Nyankpala on Wednesday.
Under the theme: “Charting a New Strategic Direction for Sustainable Growth and Member Satisfaction in the Wake of Financial Reforms for Credit Unions in Ghana”, the AGM serves as a common platform for all members to assess the performance of the Union vis-a-vis the target they set for themselves during the previous AGM.
According to Mr. Mohammed, the choice of the theme for this year’s AGM was informed by the Bank of Ghana’s directive for all Credit Unions to be registered like any of the financial institutions operating in the country.
“……..in February 2016, the BoG issued notices to all Credit Unions in the country to apply for licences to operate as Credit Unions, failure of which will lead to closure of affected unions. Requirements were set out to be met before each Credit Union can operate as a licenced financial institution”, he explained.
He said in view of the BoG directive, the Board of Directors of the Union decided to raise members shares of Ghc100.00 to a minimum of Ghc150.00 to enable the Union meet the required capital adequacy ratio of 15 percent since that of the Union fell below the 15 percent at the time the announcement was made.
Mr Mohammed also indicated that, as part of plans to transform the Union, a permanent office building was being considered for construction outside the premises of SARI in order to attract non-SARI workers who found it difficult to do business with the Union.
New products such as current account, savings account and retirement sinking funds account which would attract interest rates of 2 percent, 9 percent and 15 percent respectively, he said would be introduced in the coming years.
Deputy Director of the Savanna Agricultural Research Institute, Dr Roger Kanton, who chaired the AGM, Urged all staff of the institute to open accounts with the Credit Union.
He observed that it was not enough to open an account in a commercial bank as a staff of SARI saying “the little contributions you make today in the Credit Union would make an impact on your life after retirement. Besides, Credit Unions have flexible terms of payment on their loans compared to the banks”, he pointed out.
Meanwhile, the SARI Workers’ Cooperative Credit Union currently has a total membership of 464 segregated into 345 males and 110 females and 9 professional groups. Twenty-nine members have been added since the AGM in 2015.
By savannahnewsonline.com
