Credit unions not meant for loans – Annor

The credit union concept is to encourage the habit of savings and not purposely for granting loans to members, Mr Samuel Annor, Manager of the Central Region Chapter of the Credit Union Association (CUA) has stated.

He said it was unfortunate that in Ghana credit unions were associated with acquisition of loans mainly and urged the leadership of the societies to educate their members and the public to correct the misconception.

The CUA Chapter Manager gave the advice at a three-day management training workshop for the Board of Directors and members of the Committees of the Edwumapa Co-operative Credit Union established by the Mfantseman Municipal Assembly at Saltpond.

The Sub-committee on Gainful Employment (SPGE) of the International Labour Organisation’s Decent Work Project sponsored the workshop.

Some of the topics treated were; the credit union structure, credit union and CUA relationship, roles and responsibilities of credit union board, functions of loans and supervisory committees, and credit union policy.

Mr Annor, who facilitated the workshop, said credit unions should be regarded as a business which needed proper and efficient management.

He said he expected to see the Edwumapa Co-operative Credit Union growing to become one of the best in the region.

Mrs Grace Nicholls, Chairperson of SPGE said their mandate was to support the informal sector of the economy to grow, hence their decision to sponsor the workshop to prepare the credit union to thrive and contribute to the growth of the informal sector of the economy.

Mr John Etuah, Municipal Budget Analyst advised the participants to take the workshop seriously and be well vexed with the rules and regulations of the credit union concept since they held the key to the success of the body.

He urged them to, as much as possible; enforce the laws without fear or favour.

Mr Tsetse Arthur, Chairman of the Board of Directors appealed to the SPGE to provide allowances to people who would be invited to workshops as “going home with empty hands” after spending three days was very demoralising and would not encourage participants to respond to future invitations.
Source: GNA

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