BUSINESS MONDAY: MORE FALLOUT EXPECTED

A Credit Union official in Barbados is fearing more fallout for members of his body and the wider society if the COVID-19 pandemic is not eliminated.

Reginald Parris, Treasurer of the Light and Power Employee Co-operative Credit Union Limited, raised the concerns while relating how the pandemic had affected the organization during the 2020 financial year.

Parris said that he is looking forward to the day when COVID-19 will be talked about in the past tense.

Giving the Treasurer’s report at their recently held annual general meeting, Parris said that as the impact of the virus becomes more evident, members of the institution were going to find it difficult to meet their obligations to the body.

According to him, the credit union realises that delinquency will increase during 2021.

“The increase in unemployment will impact all sectors of the economy, resulting in a decline in disposable household income,” he maintained.

Parris said that the coronavirus continues to create even greater uncertainty, which can redound to reduced spending and an increase in the cost of living. He noted that the vaccines developed to treat the virus are indeed an encouraging sign.

He remains confident that the eradication of COVID-19 will hopefully create new opportunities for growth and prosperity for the Light and Power Employee Credit Union, its members and the Barbadian society as a whole.

His comments came while reporting some measures of growth within the organisation and declines in others.

The credit union realised a modest growth in net income, an increase in assets, but lower loans, cash and bank balances, and investment returns.

Assets were $58.4 million at year end, loans totalled $27.6 million, investments $19.6 million, an increase in net income, and cash and bank balances of $8.0 million. Comparative figures for the previous year were assets $55.6 million, loans $30.0 million, investments $14.5 million, cash and bank balances $6.7 million.