SAVANNA-LA-MAR, Westmoreland — The Westmoreland Co-operative Credit Union Ltd, despite the instability of the economy in recent years, is boasting a $15.5 million net income for 2002, a 10 per cent increase over the previous year.

The financial institution, which is managed by a team of elected volunteers, seeks to meet the needs of the poorer class of investors in the society and as such has given numerous small entrepreneurs the start they desire.

But the WCCU, like commercial banks, is faced with the serious problem of delinquent borrowers. However, bank officers’ ardent work to recover outstanding loans has paid off, with the delinquency rate falling to 4.9 per cent in 2002 from 6.9 per cent for the year 2001.

The 4.9 per cent represents $14 million which is outstanding from delinquent clients, a figure which the WCCU considers too high and will be moving to collect.

Those who borrow for the purpose of retail trade top the list of delinquent clients with 35 per cent of the funds on the road. Motor vehicle loans account for 26 per cent, while home improvement and manufacturing account for 14 and 13 per cent, respectively.

At the WCCU’s annual general meeting held recently at the Sean Lavery Hall, Wellesley Spence, chairman of the institution’s delinquency committee, urged the 150 members in attendance to repay their loans.

“I call upon our delinquent members, especially those who fall under the small business and motor vehicle loan categories, to make their payment installment a priority,” he appealed.

It was however noted that several factors may have contributed to the delinquent accounts, in some cases. These include:

* last October’s flood rains, which caused damage to the agriculture and housing sectors;

* the breakdown of business, especially in the informal sector;

* and other governmental activities, including the slide of the Jamaican dollar.

Despite these adverse conditions, members’ savings increased by $60 million for the year under review, climbing to $395.1 million.

And the WCCU’s 14 per cent increase in membership represents 3,176 new members for the same period, which is the highest increase in the credit union movement island wide.