Cabs to relaunch youth fund

cabs

CABS is working on sound recovery strategies to minimise the non-performing loan ratio and recover all the outstanding amounts

CABS says it will re-launch the balance of the suspended $10 million Kurera/Ukondla Youth Fund in the next three months although it will now be more cautious on the lending.When the fund was suspended, Cabs had disbursed nearly half of the fund at $4 898 773 but had NPL’s amounting to $3 709 724 which is about 75 percent.

In an interview at the Institute of Chartered Accountants of Zimbabwe, Old Mutual charity fundraising golf day event recently, acting managing director Simon Hammond said the first disbursement was disappointing and the lender will improve the selection and approval criteria.

“We are targeting that by June this year we should have re-launched the remaining $5 million of the $10 million Kurera/Ukondla Youth Fund,” he said.

Mr Hammond said if the defaulting rate improves, the fund will become revolving adding that CABS is working on sound recovery strategies to minimise the non performing loan ratio and recover all the outstanding amounts.

According to statistics, the first batch was availed to 22 000 applications, with only 3 608 applications being approved.  Total amount approved was at $5,187 003 with $4,898 773 million having being disbursed. The average loan size was at $1 438. The statistics also showed that 34 percent of the approved applications went to women, 65 percent went to men while 1 percent went to hermaphrodites.

The agricultural sector received the highest number of approvals with 53 percent ($2 931 808), followed by Distribution 22 percent ($984 650) and Manufacturing 16 percent ($764 750).

Meanwhile, on the Budiriro Housing Scheme, Mr Hammond said uptake is still low despite the move to reduce the deposit payment requirement by 50 percent.

“Uptake is still low but we are slowly moving there. It is not like what we would have preferred,” he said.

He added that among issues compounding the uptake was the process of going through the Harare City Council waiting list.  As at January 16 this year 332 houses had been allocated to successful beneficiaries from a total of 2 700 units.

Initially, the two-roomed houses developed by CABS in Budiriro cost $22 000 and the deposit was $5 874, while the four-roomed houses cost $27 000 with a deposit requirement of $7 258. – Wires.