The recent Teachers Fund Forum, held on 13th July 2023 at the Credit Union Hall in Elmina, provided a platform to discuss and find solutions to the delays in the distribution of loans to members of the Ghana National Association of Teachers (GNAT). In a highly significant report, the causes of these delays were examined, and strategies were outlined to overcome the challenges. This article aims to provide a comprehensive summary of the forum’s outcomes and shed light on the steps being taken to resolve the situation.
The delays in the release of funds for GNAT loans can be attributed to multiple factors. Firstly, the Teachers Fund has experienced a surge in loan applications due to the recent 30% salary increment in 2023. While this has made loans more affordable for teachers, it has exceeded the budgetary allocation for loans this year.
Furthermore, financial institutions have raised their interest rates due to the Domestic Debt Restructuring program. As a result, members are turning to the Teachers Fund, which offers a more favorable interest rate of 16.5%. However, this increased demand has further strained the fund’s resources, contributing to delays in loan disbursements.
Another significant factor is the delays in the release of funds by the Controller and Accountant General’s Department (CAGD), responsible for deducting funds on behalf of the Teachers Fund. These delays have resulted in arrears of three months’ worth of deductions, creating substantial obstacles in the distribution process.
To address the challenges and expedite loan disbursements, the Teachers Fund Forum put forth several strategic recommendations:
Welcoming New Members: Expanding the membership base will enhance the fund’s capacity to meet loan requests promptly and efficiently.
Optional Increment: Allowing members to voluntarily request an increment in their loan amount offers greater flexibility and addresses individual financial needs.
Increment in Basic Contribution: Increasing the minimum contribution amount by members will strengthen the fund’s resources and enable a smoother loan disbursement process.
Engaging CAGD: Continual efforts will be made to engage with the Controller and Accountant General’s Department to secure the early release of funds and minimize future delays.
Loan Requirement Strategy: Maintaining the current loan application criteria ensures fairness and transparency in loan approvals, maintaining the fund’s integrity.
Strict Application of Loan Appraisal Requirements: Implementing a thorough assessment process for loan applications ensures that all necessary criteria are met, expediting the approval process.
Stakeholder Engagement: Regular communication with GNAT members and all relevant parties will be maintained to provide updates, address concerns, and foster transparency.
The Teachers Fund Forum emphasized that despite the challenges faced, the Teachers Fund continues to provide significant value to its members. Loan disbursements for the first half of 2023 have already exceeded the total disbursed in the entire year of 2021, demonstrating the fund’s commitment to supporting teachers’ financial needs.
The fund managers are actively working to resolve the delays and ensure a smooth loan distribution process. It is anticipated that all those who have applied for loans will receive their cheques by the close of the following week, highlighting the dedication and diligence of the Teachers Fund.
The Teachers Fund Forum shed light on the causes of delays in GNAT loan disbursements and proposed effective solutions to overcome the challenges. Members are encouraged to remain patient and trust in the fund’s commitment to addressing these issues promptly.
The Teachers Fund continues to serve as a valuable resource for teachers, providing financial support in times of need. By implementing the recommended strategies and maintaining strong stakeholder engagement, the Teachers Fund aims to streamline the loan distribution process, ensuring the efficient delivery of funds to GNAT members and preserving the fund’s long-term sustainability.
