BARCELONA — When 1,054 credit union leaders gather during aworld economic crisis they talk about the economic situation.

Credit unions were hit less hard than big banks. Their loanportfolios are made under rigorous guidelines, but therepercussions of the financial crisis has rippled through theeconomies of most countries.

Patrick Fay of the Irish Credit Union League said many Irishcredit unions had invested in toxic products, causing them to losemoney. Credit unions faced a lending challenge. Flush withdeposits, they turned to these investments. Despite the problems,he said that credit unions are still properly capitalized. Thegovernment is insuring credit union funds for the first time.

Flowers may not seem like a credit union problem, but in Kenya,where they are a major export, and flower workers are credit unionmembers. Reduced exports to Europe are affecting local creditunions, according to Carilus Ademba, managing director of the KenyaUnion of Savings and Credit Co-operatives. Besides flowers andother export worker layoffs, tourism is down and that affectsmembers in that industry as well. Donor funds to the Kenyangovernment are down. Sources of money for credit unions arebecoming more expensive.

In Zimbabwe, where inflation has left the country devastated,Spiwe Gudza said many SACCOs have closed their doors. Hers stayedopen only because it owned the building and rents were paid indollars and rands.

Singapore has insured unlimited credit union deposits for thefirst time, according to Chan Fong Leng, chairman of the StraitTimes Co-op, but this will last only until October 2010. Prior tothat, $20,000 was the limit for financial institutions, but creditunion deposits were left uninsured.

Ross Lambrick, regional manager of Old Metro Credit Union inAustralia, said that his country's tight banking regulations madethe crisis far less severe, and credit unions were virtuallyunaffected.

Sonia Hamilton, president of the National Workers Co-operativeCredit Union in the Bahamas, said the crisis has led to far lesstourism, an industry where most of her members are employed. Manymembers have lost their jobs or have had their work hour cut.However, she sees a change in behaviour that bodes well both forcredit unions and their members. Those still working are increasingtheir savings and becoming more financially savvy.

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