adminOld Mutual set aside a US$40 million fund to revive ailing companies in the country especially those in Bulawayo.
The money is being disbursed through CABS but there have been concerns that most firms who are in dire need of the funding are failing to access it as they do not meet the set criteria. Industry and Commerce permanent secretary Mrs Abigail Shonhiwa said the existing criteria had virtually excluded ailing companies from accessing the funding.
“The people who are administering that money are vetting companies that have the ability to pay back the loans. Most companies that are really distressed could not access the money because they were considered not able to pay back the loans,” she said.
Mrs Shonhiwa said to remedy the situation Government had set aside US$5 million from the fund to be disbursed to those firms that could not access it due to the rigorous selection. She said they had also negotiated the reduction of interest rates from 15 to 10 percent.
“Disbursement of the US$5 million should start soon as we have already forwarded a list of approved companies to the ministry of Finance,” she said.
The Government has implemented various measures to revive the fortunes of ailing industries in the country including setting up other credit lines like the ZETREF fund. — Ziana.
Online Reporter