Teachers Fund Exhausted Their Loan Budget For 2023

Teachers Fund Exhausted Their Loan Budget For 2023

The mutual fund for members of the Ghana National Association of Teachers, teachers fund, appears to be under serious liquidity challenge. The fund claimed they had exhausted the amount budgeted for loans for the year 2023 as at the month of June.

A budget is an estimated amount or materials to solve an expected situation. As an estimate, a budget could have an excess amount after expenditure or allocations are made.

See also: All GNAT Members Invited To Join One Telegram Platform

Also, a budget could have a deficit that would need extra funds to support the allocations.

Some budget deficits can be anticipated. In such a case, the institution would make efforts, in advance, to seek funds to deal with that anticipated deficit. This type of deficit created little to no problem. This is because funds would have been sought and made available when the needs arise.

However, some deficits may not be anticipated or may not be planned for. This type of deficit usually creates financial problems for organisations. This is because the organization would be cash trapped when the need for the funds arises.

The teachers fund appears to be in this trouble without expecting the current liquidity challenge it faces.

Members of the Ghana National Association of Teachers’ mutual fund should therefore brace themselves for the tough times ahead.

The disclosure that the loan budget for 2023 is exhausted

The managers of the fund disclosed the information to the Western Regional council. Some national executives of GNAT in the company of the Chief Executive Officer for teachers fund met the regional council.

The national executives of GNAT and the CEO of the fund CEO met the council on Tuesday 11th July.

The scheduled meeting brought the CEO to explain issues relating to teachers fund to the council.

This is because members of the Ghana National Association of Teachers who are enrolled in the Teachers fund do not receive their loan cheques on time.

The loans are delayed up to three months sometimes. In the latest complication for loan applicants, teachers fund, through CAGD, deducted loan repayment amounts from teachers’ salaries when the teachers had not received the loans.

The situation has caused a lot of disaffection to the union. Especially when teachers who need the loan for emergency situations can not access their locked affordability to take loan from different financial institutions.

Way forward

The teachers fund disclosed many factors that created the liquidity challenge for the fund this year. The fund therefore indicated that they had put in place certain measures to correct the problem and prevent future occurrences.

A detailed summary of the meeting is illustrated here: GNAT Executives Meet Regional Councils Over Delayed Loans

It includes all the factors that created the liquidity challenge and the suggested solution to each of them.

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