Credit Corporation (Vanuatu) Limited
Credit Corporation Vanuatu Limited recorded an operating profit of VT19.94 million (K0.44 million), compared to the 2011 result of VT37.50 million (K0.84 million).
The lower profits are due to the sluggish economic conditions that prevailed during the year. New business volumes recorded a slight increase of 9.2% from previous year. Total gross receivables stood at VT614.06 million (K13.90 million) compared to VT654.31 million (K14.81 million) in 2011.
A large number of delinquent accounts were addressed as more emphasis has been placed towards consolidation and strengthening of our loan book.
The economy in general saw slow growth in most sectors, owing to an ailing agriculture sector with low commodity prices and slowing down of activities in the construction sector. Tourism on the other hand, continued to expand with increased numbers of visitor arrivals. As expected both air and cruise-ship arrivals increased significantly as with the total non-resident visitor arrivals for the same period last year.
In 2012, forecast for growth was revised downwards which was brought about by the weaker-than-expected performance in the agriculture sector owing to lower commodity prices. Manufacturing sector forecasts were also revised downwards. Economic growth for 2013 is expected to be around 3.7 percent.
With this, trading conditions were often difficult during the year with a subdued economy. A slowing in banking activity and domestic credit saw high liquidity levels which resulted in a drop in both deposit rates and lending rates.
The outlook for growth is expected to be supported by increased tourism arrivals and services activities and various ongoing projects.
After this consolidation phase, we will continue to focus on improving the performance of the Company to maximise profitability and continue to maintain our strong presence in Vanuatu.