CARDIFF, Wales–The Welsh government said it will provide as much as £1 million in funding to be invested in credit unions to ensure they can provide access to fair and affordable credit for people affected by the coronavirus pandemic.
The funding aims to ensure that everyone in need of credit is able to access affordable financial services from credit unions, according to Deputy Minister for Housing and Local Government Hannah Blythyn.
The Leader reported credit unions in Wales, like most financial services providers, had seen a decline in loan volume as a result of the coronavirus pandemic, although a rebound is being seen. But the slowdown is going to be seen in the declining net income of Welsh credit unions, which is why the government is providing the additional funds through the Credit Union Capital Loan Fund.
“Credit unions provide an excellent and ethical way for people to save regularly and borrow affordably and responsibly,” Blythyn told The Leader. “They feature strongly in our efforts to tackle poverty and will continue to play a key role in building financial resilience. During the coronavirus lockdown they made significant efforts to maintain essential services for existing customers and also new members looking to borrow affordably.”
‘Now, More Than Ever’
“Now, more than ever, members will be looking to their trusted credit unions to provide assistance to navigate the unprecedented times that lie ahead,” she continued. “Over the past six months, despite some having to close their doors physically, credit unions have been there for those in need of affordable credit. I am pleased that as restrictions start to ease, credit unions have begun to re-open branches and increase the range of services available.”