LOW-INCOME earners who cannot access loans through commercial banks because of stringent requirements will now have even more difficulty obtaining funds if the Credit Union Bill is passed in Parliament.

The head of the country’s biggest umbrella trade union organisation also said the Bill could force the closure of many small and medium sized credit unions.

Fiji Trades Union Congress (FTUC) general secretary Felix Anthony said credit unions were established to assist low income earners gain access to loans for special purposes.

He said those were workers who could not obtain loans from commercial banks because of their stringent requirements.

“Under this Bill, all credit unions will be regulated by the Reserve Bank of Fiji and those wishing to obtain funds will need to meet RBF requirements. What this effectively does is make it difficult for ordinary workers and also for the credit unions that serve these workers.

“For the life of me, I cannot understand the reasoning behind this Bill and this really needs to be clarified and the Reserve Bank needs to ensure that all stakeholders are made aware of the possible implications if this law is passed.”

Questions sent to the Reserve Bank of Fiji two weeks ago remain unanswered.