Government has been advised to channel its resources, grants and loans through the credit union to achieve their objectives especially in terms of loans and loan recovery instead of the banks.
William Dogbe Gidisu, Volta Regional Chairman of the Credit Union Association of Ghana gave the advice at the 13th annual general meeting of the Paradise Cooperative Credit Union LTD in Hohoe under the team Credit Unions, Growing the local economy
According Dogbe, recovering loans from debtors through credit unions is very easy as compared to banks as the credit unions are everywhere in the country
“The best way for government to channel its grants and resources is through the credit unions instead of the banks. Tracing loans through credit unions is very easy and government should take advantage of it” he said.
According to him, with the policy of one district one factory, the government can as well work hand in hand with the credit union to achieve the policy.
The BOD chairman of the paradise cooperative credit union, Bessa Akpalu said although unions continue to play very important role in developing people in the rural areas, the majority of the population are not aware about the credit union, its benefits and role it can play in their socio –economic development.
He has appealed to the management of the union at the national and the regional levels to intensify and extensity education on the benefit of the credit unions especially using the local radio stations to educate the people.
This, according to him will make the credit unions the engine of socio-economic growth in the rural areas.
Talking about the challenges, he said efforts are being made to put in place to lower the default rate when it comes to loan repayment as a major challenge.
