COVID-19 UPDATES: All the stories and commentaries on Coronavirus, in one place


Central Bank Orders Banks Freeze Loans

The suspension includes the disbursement of loans that have already been approved

August 12 , 2021


The National Bank of Ethiopia (NBE) has ordered commercial banks to suspend all collateral-based loans, an unexpected measure communicated to executives through text message on August 11, 2021.

The National Bank of Ethiopia (NBE) has ordered commercial banks to suspend all collateral-based loans, an unexpected measure communicated to executives through text message on August 11, 2021.


The suspension includes the disbursement of loans that have already been approved.


The text messages did not specify how long the suspension is to last. Neither are officials at the central bank forthcoming to explain the rationale behind their abrupt measure. The decision was made to curtail "economic sabotage," according to senior government officials.


Private commercial banks disbursed loans totalling 121.2 billion Br in the 2019/20 fiscal year while collecting 93 billion Br in repayment over the same period.



PUBLISHED ON Aug 12,2021 [ VOL 22 , NO 1111]


How useful was this post?

Click on a star to rate it!

Average rating 3.2 / 5. Vote count: 13

No votes so far! Be the first to rate this post.




One thought on “Central Bank Orders Banks Freeze Loans

  1. Dear NBE
    Thats not easy for all bussineses cause that can create non stable inflation in our coutry so try to ammend that. 10×

Comments are closed.


Put your comments here




Editors' Pick



Editorial




Drop us a message

Or see contact page