The fund was established two years ago after
Cabs, using the shares from the trust as security loaned almost half of the fund to 3,608 youths out of the 22,000 applications.
"About 78 percent of the loans are non-performing," Cabs managing director,
He said of the
Terry said the trustees, who also include youth ministry officials were not happy with the high rate of defaults.
"The trustees are looking at how the fund is working and its clearly not working that well. As a whole its performance is not ideal and so the trustees have undertaken to do a review of the strategy of the fund," he said.
Terry said disbursements of the loans had been suspended since end of May at the behest of the trust which is now seeking new strategies to deal with the high rate of default.
"The trustees have asked us to suspend giving out more loans until they have looked at whether this is an appropriate mechanism," he said.
He said there was need for capacity building for the youths to enable them to handle the funds properly.
Earlier, CBZ banks officials, whose bank also administers youth funds appeared before the same committee and complained of non-performing loans.
Since 2009, the group chief executive, Never Nyemudzo said the bank had disbursed
"The performance has generally been very good with a default rate of close to 45 percent," he said.
The bank's managing director, Peter Zimunya however said a 45 percent default ratio was "very bad" compared to a normal level of five percent but since it was empowering youth, it would not be regarded as bad.
He said most defaults were in the manufacturing, poultry and cross border sectors and attributed them to poor management and general unwillingness to pay back the loans.
He said under the
Of the total under the
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