Berhan Bank has cut interest rates ranging between 0.5 to four percentage points as of May 18, 2020, to mitigate the financial impact of the Novel Coronavirus (COVID-19). The adjustment of the interest rates is for the agriculture, manufacturing, export, building and construction sectors. The most impacted industries have received the largest cuts. Accordingly, the horticulture industry and exporters of fruits and vegetables have received a four-percentage-point cut, while the hotel and tourism sector will get a 3.5-percentage-point cut. In addition to this, the sectors will also have a grace period on principal and interest loan payments for a period of six months starting May 18, 2020. The industries are also eligible for loan rescheduling privileges. The Bank is expected to lose 100 million Br as a result of the cuts it has made. Previously, Berhan Bank waived commission fees for loan extensions, letters of credit (LC) and additional interest rates, while also preparing 35 water tanks for washing stations across Addis Abeba and other regions.
Loading your updates...