The purpose of the Rural Financial Institutions Project is to establish user-owned savings and credit institutions which mobilize household savings for reinvestment into productive loans in the rural community. The World Council of Credit Unions started working in September 1995 and created the FULM Savings House. The project has established a continuing relationship between the Michigan Credit Union League and the Macedonian FULM Savings House.
The FULM Savings House has been very successful in creating a membership base which reflects the characteristics of Macedonia's population. As of September 2005, the Savings House had 5,060 members located in all fourteen regions of Macedonia. Six fully operational branches have been established in five regions of Macedonia. Women members account for a little over 37% of the total membership.
A significant part of the success and continuing membership growth of the Savings House has been its innovative, comprehensive and professional marketing activities. Because of the stigma attached to Savings Houses, the Project chose to market itself under the slogan, “Different from other Savings Houses” and this strategy has been extremely successful. In response to member's suggestions and needs a comprehensive range of deposit and lending products have been developed.
As of September 2005, the FULM Savings House has well-established and well-documented accounting, reporting and internal audit systems. Dedicated internal audit staff monitors the operations of each branch and the Central Office in accordance with a regular monitoring program. The financial performance of the FULM Savings House as a whole, and of each branch office, is monitored monthly via the production of detailed management and financial accounting reports. Management and staff of the Savings House have also been trained to use the system of internationally recognized key performance indicators developed specifically for credit unions and other savings institutions by WOCCU and known by its acronym, PEARLS.
By September 30, 2005, the consolidated financial statements of the Savings House showed net assets of just over US$ 3 million. The outstanding gross loan portfolio is valued at US $ 2,860,000, member savings amount to US $1,809,000 and member share capital equals US$166,246. The Savings House has consistently reported a net income since March 2001.
World Council of Credit Unions, Inc. as a part of its People to People (PTP) program has begun a partnership between the Michigan Credit Union League and the FULM Savings House. The PTP partnership will provide continued assistance to FULM Savings House through the Michigan Credit Union League in the areas of technical assistance, credit union mentoring, education and training.
For more information:
U.S.Agency for International Development
U.S Embassy, Samoilova 21,1000 Skopje, Macedonia
Telephone: +(389) 2 310 2000 Fax +(389) 2 310 2463
USAID Mission contact:
Zdravko Sami
E-mail: zsami@usaid.gov
USAID Development Outreach and Communication office
Biljana Velickovska, DOC Specialist