By Christian Mullins
Canada
New Brunswick has instituted several rules changes to credit unions and caisse populaires in the hopes of avoiding another bailout like Caisse Populaire de Shippigan, which cost the provincial government $31 million last year. The key rule change states that if a credit union declares bankruptcy, member’s deposits are guaranteed to $250,000, bringing them in line with other Atlantic provinces. Previously, 100% of their deposits were insured.
Ghana
The Twifo-Heming-Lower Denkyira District Teachers Co-operative Credit Union (say that five times fast) reports that their bottom line is being affected by members who borrow funds then move to another region on study leave, failing to repay the loans. The Accountant-General’s Department compounds the issue by deleting member names that depart the region on study leave.
Ireland
Over the past four years, 149 credit unions purchased approximately €180 million in investment bonds that have since lost about 40% of their value. An agreement reached through the stockbroking firm Davy will allow the credit unions to recover about €35 million, the value of losses on investments sold through the firm, over a ten year period.
Several companies offering Rent-to-Buy homes are being met with skepticism. It’s a ‘try before you buy’ system, which allows the prospective owner to rent the home at above market prices, with some of that money going to a deposit on the home. The homeowner/landlord sets a price for the future sale of the home, and the renter has the choice to buy or move out. Rent-to-Buy is seen as an acceptable market tool provided the value of the home increases or remains steady.
