Home > Business News > Legon Credit Union to become Bank

Legon Credit Union to become Bank

credit_unionThe University of Ghana Co-operative Credit Union Limited is to operate as a quasi-bank, to provide various financial services including educational and Christmas savings with higher returns to members.

A three-year strategic plan, detailing the various processes and guidelines leading to its take-off, has been developed and management is tasked to work towards its implementation.

Professor Dominic Edoh, Board Chairman of the Union, disclosed this at its Annual General Meeting held in Accra on Thursday. Professor Edoh said the move was to give loans at low rates as well as offer high returns on savings to ensure that members who were mostly workers at the University had access to adequate capital to carry out their activities.

He said the 2008/2009 financial year had been an eventful one for the Co-operative citing the global economic crisis and high crude prices, which had serious consequences on its operations. He said despite the challenges, the Co-operative maintained its loans interest at 14.63 per cent to provide affordable credit facilities for members to improve their livelihood.

On the gains made, Professor Edoh said the Co-operative had posted a net profit of GH¢608,199.04 representing 66.5 per cent over the previous year’s proceeds.
He said the asset size of the Co-operative grew by 33.16 per cent, raising its value to GHc¢6,953,498.77 while its membership also increased from 3191 to 3,422 in the year under review.

He said in view of the significant gains, the Co-operative had paid a dividend of GH¢0.14 to shareholders. The Board Chairman said to avoid liquidity shortfalls, management had created a buffer to be supported by part of the dividend to ensure continuous availability of cash to honour loan requests.

He said management was not oblivious of the difficult times ahead and projected to achieve a GH¢1,327,327.60 income and GH¢459,727.60 as profit for the 2009/2010 financial year. He commended management for their hard work over the years and shareholders for keeping faith with the Co-operative. He also commended the authorities of the University of Ghana for their assistance to the Co-operative.

Source: GBC NEWS

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