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EASTERN CREDIT UNION Annual Report 2018

As seen in the graphs, an influx of requests for share withdrawals and share to loan transfers was treated with, by
the Committee. The Credit Committee continues to be concerned with granting such requests as these requests
bear consequence on the share capital of the Society. However, any denial of these requests will inevitably
have a transient negative effect on either the delinquency portfolio or the member who is making the request,
personally. Many of these requests derived from members who fell on difficult times due to ill health and job loss,
among other extenuating circumstances.

The Credit Committee wishes to remind the membership that this Society continues to be an open one which
draws members from all walks of life. The recent retrenchments from major companies and state enterprises
have affected many of our members and subsequently, it has directly affected us. The year 2018 had seen an
increase in members liquidating their loan from shares as well as through the business of our competitors. This
has also contributed to a decrease in the overall loan portfolio of the Society and an increase in the delinquency
percentage.

Delinquency
As aforementioned, the wanton loss of jobs in 2018, the increase in loan liquidation and the decrease in the
loan portfolio have all contributed to our delinquency portfolio facing some turbulence. Notwithstanding this
we were able to stabilize the trend to an average 10% in an overall loan portfolio of $1.37 billion throughout
most of 2018. On the particular day when the data is captured, the standing orders from the third-party financial
institutions and over the counter payments which have not yet hit the accounts, skew the delinquency figure to
represent a higher percentage. However, by the middle of the following month the downward trend is noted.

Notwithstanding this fact, the valiant efforts made by the institution at the levels of the Delinquency Committee,
Executive Management, Branches and the Delinquency Officers, ought not to be discounted. These efforts include
but are not limited to initiatives such as Tribunals held by Executive Management, follow-ups by the Call Centre,
Debt Consolidation, loan rescheduling and the work of the Collections Unit. Whilst the Committee is mindful
of the Pearls Ratio of 5%, the harsh economic realities which confront Trinidad and Tobago do not in any way
insulate Eastern Credit Union.

Credit Committee Branch Initiative
At the start of its term, the Committee recognized that it had to depart from what was customary for previous
Credit Committees coupled with the fact that the Committee was in receipt of several complaints from members
regarding the loan process and its timeliness. Therefore, a Credit Committee Branch Initiative was envisioned and
proposed which would see the Committee, accompanied by Executive Manager Credit Administration, visit all
Branches across the Society with a view of holding meetings with its Managers, Supervisors and Loan Officers.
This was in hope that a meeting of the minds would cure some of the defects and rectify most of the pervading
issues.

While bringing this initiative into fruition was impeded by logistical challenges in the past term, the Credit
Committee commits to tabling this activity as part of its mandate for the upcoming term, 2019- 2020. With an
aim of carrying out our function in the most effective manner, the Credit Committee sets out to enhance the

48 NAVIGATING THE FUTURE TOGETHER