16/10/2008

People in all parts of Wales now have access to a credit union, Social Justice Minister Dr Brian Gibbons announced today.

"In these difficult economic times it is understandable that confidence in mainstream financial service providers is low," said Dr Gibbons.

"Credit unions operate by members saving into a common fund. This fund can be then used to make low interest loans to the credit union members.

"Any surplus made from the granting of loans is reinvested in the credit union or re-distributed to the members in the form of a dividend and as result nothing leaves the community."

Dr Gibbons was officially opening the new North Abergavenny collection point on International Credit Union day.

With credit union membership in Wales in excess of 40,000 adult members and 7,500 junior members and savings held in credit union adult accounts reaching the 16 million pound mark, the Minister said that in a turbulent global market, credit unions are providing an ever more friendly, local option, offering people access to a range of financial services and in the run up to Christmas and similar events, credit unions can provide more affordable credit to its members.

The establishment of a successful and sustainable credit union movement across the country is a One Wales commitment. Dr Gibbons said that achieving all-Wales credit union coverage is a major milestone.

The Social Justice Minister said: "Due to the way in which they operate, credit unions can and do help to combat financial exclusion and rebuild consumer confidence. This is why the Assembly Government continues to support the movement, helping credit unions to develop and grow, to realise their full potential as social enterprises and a focus in their communities."

The Minister said that since 2000 the Assembly Government had invested 1.75 million in developing a strong and sustainable movement which will be maintained and built on.

"We have promised another 1.75 million to deliver our One Wales commitments on credit unions, including all-Wales coverage, establishing access for secondary pupils and helping more to offer child trust fund accounts.

"Today marks the beginning of a new era for the credit union movement in Wales, one in which we can build still further on our successful partnership to date."