BARBADIAN TEACHERS have been so unwilling to borrow from their credit union that’s its hierarchy is now virtually begging them to apply for loans.
The Barbados Teachers’ Cooperative Credit Union Limited’s (BTCCUL) credit committee report that its 2 343 members made 877 applications for loans in the financial year ended March 31, a 15 per cent decline over the previous year.
In dollar terms, members, who treasurer Atherley Burrowes called “conservative”, borrowed $1 million (2.3 per cent) less. There were more interested in saving, depositing $3.7 million more (5.7 per cent) over the review period.
In his report, which was examined by members attending last month’s annual general meeting, Burrowes said: “Members are still bringing their money into the credit union, which is good, but we also want them to take some money out of the credit union by way of loans. We are striving for balance where the funds received are then lent out in order to earn money for members.”
“This year loans declined…. The situation was compounded by an increase of $210 537 or 38.8 per cent in the provision for bad debts. This is a reflection of the economic situation still facing us.”
He added: “Members continue to be conservative in their approach to borrowing, sometimes opting to withdraw deposits rather than commit themselves to debt. I want to encourage members to utilise our services whenever possible, for example, to purchase consumer items that would normally be obtained through hire purchase. This would significantly contribute to our interest income and result in savings for members.”
The official hoped that the trend of increased deposits “will be balanced by a similar or even greater increase in loans going out”.
Good news for the credit union was that its surplus grew from $480 276 to more than half million dollars, and total assets grew by $3.5 million (4.4 per cent) to end the year at about $83 million.
BTCCUL also wants to increased its membership, which grew by just 16 over the last year. The credit union’s board of directors said they “have recognised that traditional membership growth strategies will no longer be adequate to sustain membership growth during the long term”.
“We will intensify our marketing strategy to attract greater membership. In addition, the BTCCUL will embrace various approaches to support our efforts, which include targeting new teachers joining the teaching service and their families, as well as outreach visits to schools and other institutions.”
