The Alberta government plans to merge two of its lending organizations
in an effort to save more than $1 million a year.
The Alberta Financial Services Corp., which lends money to farmers, and
the Alberta Opportunity Company, which lends money to small businesses,
will become one organization in the new year.
While the two organizations do not lend money to the same clients, they
do work closely together, said Gerry McCracken, manager of corporate
development with AOC.
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The merger is a way of formalizing the existing relationship they have
and save money, he said.
Staff in AFSC’s 50 offices provide crop insurance, income protection,
farm lending and commercial financing. AOC has 10 offices in many of
the same communities.
“Both operations work at making loans,” McCracken said.
Details are sketchy regarding how money would be saved, but the new
organization will have fewer offices and office staff, as well as only
one president and one board of directors.
Andrew Church, acting AFSC president, said saving money was not the key
reason for the merger. Rather, he said the government was trying to
improve lending services to customers.
Agriculture minister Shirley McClellan will introduce legislation in
the spring to formalize the merger. The merged company will be called
the Alberta Financial Services Corp.
