Community & Workers C o- operative Credit Union of Jamaica (C&WJCCUL) will be shortlisting on the Jamaica Stock Exchange $900 million deferred shares owned by its members.

The move, a first for any credit union in Jamaica, is aimed at identifying a consistent source of funding, the company said in a news release yesterday.

Each member will have until July 16 to identify a broker and sign up for a number at Jamaica Central Securities Depository , the credit union explained, adding the initiative is being guided by MoneyMasters Limited.

The release reports Carlton Barclay, CEO of C&WJCCUL, as saying that if it were to qualify as capital, the funds would have to meet certain requirements, one of which is that no withdrawal can be done at short notice.

“C&WJCCUL has used deferred shares in the past to bolster its capital requirement. However, the shareholders — with the greatest of intent to keep their funds for the mandated five years — would withdraw amounts to cover unforeseen or unexpected expenses. However, such pay-outs would negatively affect the credit union’s capital amount,” the release quotes Barclay.

Against that background, C&WJCCUL is seeking to establish a fund which will ensure that the amount put in by each member is maintained over the life of the investment and no withdrawals can be made during that period.

“Listing the shares on the Jamaica Stock Exchange provides the protection to C&WJCCUL and allows each member shareholder to recoup or access the funds by selling the shares at any time through an established broker,” said Barclay.

http://www.jamaicaobserver.com/business-report/CREDIT_UNION_FIRST_198165