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The Ministry of Finance has launched a US$40 million Distressed Companies’ Fund which is meant to assist companies in need of recapitalisation.

 

Speaking at the launch of the fund in Bulawayo, the Minister of Finance, Mr Tendai Biti said it will be used to bail-out distressed companies at a low interest rate of 10%.

 

Mr Biti highlighted that while the fund is national, a certain percentage will be reserved for the Matabeleland region.

 

The fund will be run by Old Mutual Zimbabwe who provided $20 million with government putting in another $20 million.

The launch of the companies’ fund also coincided with the unveiling of a $40 million housing fund.

 

Mr Biti said the beneficiaries of the housing fund will be first-time home owners, adding that the two funds will be administered by Old Mutual.