High loan delinquencies concern credit unions
THE BET Cooperative Credit Union Limited ended the last fiscal year with financial investments totaling $16.1 million.
This was one of the highlights told to members at their Annual General Meeting held recently. The board, led by chairman Felton Burton, revealed that the financial investments were spread across a portfolio of 14 separate investments across six institutions.
“Of our total investments, $9.9 million is invested in term deposits,” the board members said. “Our shares are split between Cooperators General Insurance and the Barbados Cooperative and Credit Union League with $1.5 million and $24,000 respectively,” according to the board. In addition to Burton, the other members are Michael Alleyne, Vice President; Clifford Bostic, secretary; Julian Watson, Treasurer; and Philip King, Assistant Secretary.
The Board further noted that crime within the organization is a major concern for all stakeholders.
According to officials, “the board and staff have tried to work with our members to address our concerns.” It was pointed out that the high delinquency rate requires us to build up a high provision for bad debts.
Defaulted loans were estimated at approximately $5 million in fiscal year 2021 to 2022.
They added that the year under review showed a weaker operating surplus picture compared to the previous year.