Plenty Of Road Blocks To InternationalLoan Participations
PARADISE ISLAND, Bahamas - (08/03/04) During the World Council of CreditUnions International Leadership Institute here, severalrepresentatives of African credit unions lamented they aredesperately short on liquidity to fund loan demand. At the sametime, one Irish credit union rep said his CU is flush withliquidity, as loan demand has been tepid. So why isnt therean international loan participation market among credit unions? Theanswer, according to several people who spoke with The Credit UnionJournal, lies in the fact a loan in one place wouldntqualify as a loan in another. Some credit unions in Africa, forinstance, have sky-high delinquency rates. There is nointernational loan participation market because of the risksinvolved, confirmed the World Councils ArthurArnold.