A subsidiary of
The financial institution has received around 22 000 applications since the fund was launched two years ago and had disbursed
Cabs managing director,
"The trustees (of the YDF) have asked us to suspend doing more loans since May,"
"The last disbursements were done in May and the funds are just sitting at Cabs."
"It will be better if the fund was linked to vocational training centres, that way we will be lending to someone who has been given some training," the Cabs boss said.
He said a number of projects were performing well although the majority were struggling.
Another bank, CBZ which has disbursed
"The performance has generally been very good with a default rate of 45 percent which means 55 percent of the beneficiaries have been able to pay back their loans," he said.
Defaults were mainly by beneficiaries in the cross border, manufacturing and poultry business, he said.
"The major reasons for this default have been to do with management and general unwillingness to payback the loans," he said.
"On normal business the rate of 45 percent is very bad but we are trying to empower the youths," he said.
"When we train them, it should come down. The normal default level for a bank is around five percent."
The youth fund was set up to support income generating programmes to uplift the livehoods of youths in the face of economic challenges and unemployment in the country.
Committee members expressed concern on skewed lending which appeared to favour big cities and towns. -- New Ziana.
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