COVID-19 forced CEDA to foreclose P175m worth accounts

Karabo Gare
Karabo Gare

Government has put in place a suite of measures aimed at mitigating the negative effects of COVID-19 on projects funded by the Citizen Entrepreneurial Development Agency (CEDA), Parliament has been told. Presenting to Parliament recently, the Minister of Entrepreneurship, Karabo Gare said the move followed foreclosures of a number of businesses by the development financial institution.

He told Members of Parliament that CEDA has foreclosed about 237 accounts valued at P175 million since the pandemic, with two from the hospitality sector valued at P25 million. As at March 31, 2020, before the onset of COVID-19, CEDA’s portfolio was made up of 5, 482 accounts valued at P2.4 billion.

To foreclose means to seize assets of a borrower in cases where the loan repayments are in serious arrears. Gare said of the measures put in place: “These include extension of repayment holidays for up to a maximum period of 12 months across sectors and reflects from March 2020 to April 2021. Rescheduling of 1, 458 loans on portfolios valued at P329 million across sectors.” Amongst others was the introduction of the Letlhabile micro loan product for the informal sector, which specifically focuses on uplifting the informal sector.

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