Government urged to promulgate Credit Union Bill

Effiduase, Oct. 16, GNA - Mr Emmanuel Oduro-Darko, General Manager of Ghana Credit Union Association (CUA), has observed that poverty reduction could be achieved with the support of the non-banking sector assisting in the savings of the low income earner. He noted that credit unionism worldwide had proved that compounding capital through voluntary savings, investment and accumulation of assets had greater impact on poverty reduction.

Mr Oduro-Darko made the observation at the celebration of International Credit Union Day at Koforidua at the weekend. He appealed to government to promulgate the credit union bill to ensure that such an avenue to reduce poverty, "was not left without a recognized legislation to govern its operation". Mr Oduro-Darko said CUA currently had more than 500,000 members and assets totalling 84.7 million Ghana cedis and outstanding loans of 45.7 million Ghana cedis as at December last year. He said most of its members had benefited from loans that had enabled them to finance their children and wards education to tertiary levels, expanded their businesses and acquired houses to improve their living standards.

Mr Emmanuel Nelson-Cofie, Eastern Regional Chapter Chairman of CUA, said the celebration was to reflect on the contribution of credit union towards wealth creation, poverty reduction and development goals of the government.

He said the union had contributed to national economic development through the mobilization of savings and granting of loans to members. Mr Nelson-Cofie said about 39.1 million Ghana cedis was granted as loans annually by CUA to members engaged in small and medium scale businesses out of the yearly mobilization of between 18 million Ghana cedis to 20 million Ghana cedis.

Mr Ofosu Asamoah, Deputy Eastern Regional Minister, said wealth creation and poverty reduction was a major concern to government and would ensure that CUA was assisted.

He said over 60 per cent of money in circulation in the country was being kept at home and the ability of the banking sector to mobilize that excess liquidity remained a challenge.

Mr Ofosu Asamoah urged management of CUA to utilize their structures to support implementation of the National Health Insurance Scheme (NHIS).