News / Local
Cabinet to approach CABS to relax Dimaf lending conditions
16 Feb 2012 at 06:50hrs | Views
STRUGGLING businesses in Bulawayo could get a reprieve after it emerged that Cabinet is considering approaching CABS to relax conditions to access $40 million Distressed and Marginalised Areas Fund (DIMAF).
Business had complained that set conditions are not conducive for distressed companies.
Minister of Industry and Commerce Welshman Ncube hinted that Cabinet, after receiving complaints from industries it was agreed that further consultations should be done with CABS.
Ncube said only three firms out of 60 that had applied have successfully met the set criteria.
"Cabinet agreed to approach Cabs with a view of relaxing some of the requirements. Companies had been saying the conditions are too stringent," said Ncube.
He said firms whose applications have been turn down are free to make fresh application once CABS agree to relax conditions.
According to CABS, Dimaf would allow companies to purchase equipment and raw materials to enhance output and quality of goods being produced, and to assist them in covering their operating costs.
The bank stated that minimum requirements for companies to qualify to access the funds included a "minimum of two years accounts (management accounts or financial accounts) audited if possible, acceptable collateral, projections for Capex (capital expenditure) loans covering the tenor of loan (12 months), budgets and cash flows and turnaround strategies as well as a business plan."
About 87 firms closed shop in Bulawayo leaving 20 000 jobless but the Dimaf is expected to bring relief to some of these entities.
Business had complained that set conditions are not conducive for distressed companies.
Minister of Industry and Commerce Welshman Ncube hinted that Cabinet, after receiving complaints from industries it was agreed that further consultations should be done with CABS.
Ncube said only three firms out of 60 that had applied have successfully met the set criteria.
He said firms whose applications have been turn down are free to make fresh application once CABS agree to relax conditions.
According to CABS, Dimaf would allow companies to purchase equipment and raw materials to enhance output and quality of goods being produced, and to assist them in covering their operating costs.
The bank stated that minimum requirements for companies to qualify to access the funds included a "minimum of two years accounts (management accounts or financial accounts) audited if possible, acceptable collateral, projections for Capex (capital expenditure) loans covering the tenor of loan (12 months), budgets and cash flows and turnaround strategies as well as a business plan."
About 87 firms closed shop in Bulawayo leaving 20 000 jobless but the Dimaf is expected to bring relief to some of these entities.
Source - Byo24News
