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Economy

Youth Fund halts loans recovery, CRB listing in virus fight

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The relief to borrowers will end once the fund is satisfied that the enterprises are not affected by coronavirus. FILE PHOTO | NMG 

The Youth Enterprise Development Fund (YEF) has suspended recovery of loans and listing of defaulters with the credit reference bureaus to cushion beneficiaries from the impact of Covid-19 pandemic.

The fund, in a letter addressed to members, said Monday the moratorium on loan repayments would target youth whose servicing abilities had been affected following the outbreak of coronavirus.

The relief to borrowers will, however, end once the fund is satisfied that the youth-owned enterprises are not affected by coronavirus. “The moratorium on loan repayments by youth-owned small-medium enterprises financed by the fund started on April 1.

“It’s a case by case basis. We are also looking at member’s previous payment history,” YEF acting chief executive Benson Muthendi told the Business Daily in a telephone interview.

Mr Muthendi said the fund suspended blacklisting of youth-owned enterprise whose loan account fall overdue or in arrears.

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“We normally ask clients who take high premium loans to deposit with us security. In this case, and for the time being, the security shall not be recalled if a member defaults,” he said.

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