The Board Chairman of Dormaa Teachers Co-operative Credit Union, Mr Kwasi Siaw, has expressed the Board’s concern over the spate of non payment of loans by beneficiaries, granted by the union.
Mr Siaw, who made this known in an interview with the Ghana News Agency (GNA) at Dormaa-Ahenkro, on Saturday, said 66 percent of the union’s total asset of GH¢5.4 million has gone out to members as loans but repayment on schedule had become a problem.
“In spite of the union’s 10 percent penalty imposed on loan defaulters and constant radio reminders, as well as threats of legal action against them, some of them would not budge”, Mr Siaw said.
Mr Siaw noted that 4,018 members of the union accessed loans for various purposes amounting to more than GH¢5.1 million, during the 2009/2010 financial year, and expects to increase the amount to cover members who may require financial assistance during the year.
He said the membership of the union increased from 2,354 in 2009 to 5,119 in 2010 and was hopeful that its assets would equally record growth.