Credit Corporation (Vanuatu) Limited

"2016 looks to be a better year as we will be rebuilding and expanding our business, promoting new products, training staff, revisiting clients and targeting well run business in the small to medium size sector."

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Credit Corporation (Vanuatu) Limited

  David Weston
Managing Director

2015 was an extremely challenging year for Credit Corporation (Vanuatu) Limited, with the company returning an operating profit of Vatu 35.35 million (K955,820) for the year, a 44% decrease on the prior year result.

During March 2015, Tropical Cyclone Pam, a category 5 cyclone devastated Vanuatu. Very few business escaped unscathed and it will be some years until the country fully recovers from the devastation caused. Although the business sector is recovering, it is a slow process. Credit Corporation has moved quickly to assist our clients on a case by case basis and hopefully with this assistance their business will return to normal as quickly as possible.

All areas of the Vanuatu economy are under pressure with many hotels still to reopen and as a follow on tourism numbers are significantly down on previous years. It is hoped that with more and more hotels reopening and the airport being brought up to international standard the economy will start to improve.

As a result of the cyclone, our arrears are a concern. However processes were put in place during the year to manage and improve on this difficult situation and our portfolio is adequately provisioned. Operational expenses have been well controlled in 2015 and although the company loan book reduced in 2015 the company remains in a strong financial position with total assets of Vatu 665.98 million (K18 million) and shareholders’ funds of Vatu 458.43 million (K12 million) as at 31 December 2015.

It is hoped that the Vanuatu economy will continue to record positive growth as the global economy improves and the country’s recovery continues. The bulk of this rebuilding is being funded by development partners. Several large infrastructure projects are getting underway and tourism and agriculture are slowly recovering so there should be

 

some growth in 2016, although inflation is forecast to rise in line with these expectations of stronger growth.

While 2015 was not a successful year for Credit Corporation (Vanuatu) Limited we seem to have seen the worst of it and 2016 looks to be a better year as we will be rebuilding and expanding our business, promoting new products, training staff, revisiting clients and targeting well run business in the small to medium size sector.

David Weston
Managing Director