State-owned development finance institution the Industrial Development Corporation (IDC) has already approved loans totalling more than R600-million to 11 companies in distressed Manufacturing sectors.

The Department of Trade and Industry (DTI), which also confirmed that the IDC is evaluating a further 49 applications, said the IDC had spent loans worth R644-million, according to Engineering News.

The IDC previously said it had earmarked R6-billion from April to assist companies that are facing financial difficulties as a result of the global economic downturn.

The Automotive sector in particular has made use of bridging finance from the IDC to assist with cash flow constraints, as well as ensuring that the current pipeline of automotive investments was not jeopardised by a lack of finance.