Finance Minister Paula Cox yesterday stressed the importance of credit unions as Bermuda tries to weather the global economic storm.

Speaking at Bermuda Industrial Union Credit Union annual general meeting, Ms Cox said such initiatives encourage people to make savings and help the community remain socially stable.

The Deputy Premier also pointed to imminent legislation changes which will transfer credit union supervisory responsibilities to Bermuda Monetary Authority, in line with international best practice.

"Credit unions are playing an increasingly important role in our society," Ms Cox said.

"They promote social stability and increase savings that are crucial for the economy."

She praised Bermuda's credit union staff for operating "with a heart" and said that her wish list going forward included maintaining and encouraging the establishment of credit unions.

Ms Cox also stated the need for honesty and integrity within the system, and said the Island should strive towards clear and persistent regulations.

BIU's credit union has 5,000 members, and is designed to give as many people as possible access to financial services.

On a recent visit to the Island, Malcolm Edwards of the World Council of Credit Unions said the BIU's credit union was in need of modernisation, and that some credit unions in other countries have ATMs, on-line banking and offer loans.

Meanwhile Ms Cox says hope of an economic recovery are a little brighter than this time last year.

In an e-mail to The Royal Gazette, she said: "The economic climate is not materially different from last year except that there is slightly more confidence in an economic recovery towards the end of 2010.

"Rigorous financial discipline in 2010/11 will place Bermuda in a strong fiscal position as the global and local economies enter recovery.

"In order to address the overall fiscal challenges, Government will set policy priorities and be disciplined about how priorities will be funded.

"As always serious consideration is given to the economic and fiscal necessity of re-prioritisation of programmes in order to pay for any new policy priorities.

"The zero-based budgeting approach assists immensely in deciding which programmes to keep and which to let go. We have therefore a challenge but also a tremendous opportunity to lead with innovation and sensitivity."