May 16 , 2020
Dashen Bank has joined the blitz and cut its lending interest rate to be equal to its seven percent deposit rate for businesses in the horticulture, hospitality and export sectors beginning in June. The Bank also gave its blessing for borrowers from the hospitality and horticulture sectors to reschedule their loan repayment periods for up to five years with a six-month grace period. In the case of exporters, they have been privileged with a three-month grace period and three years of loan repayment extensions. Borrowers will not pay commission charges when they reschedule their loans. Borrowers from the transport, manufacturing and education sectors are incentivised with a three-month grace period and three years of loan rescheduling. Customers who had been paying a 17.7pc to 18pc interest rate attained a 1.5 percentage point cut, whereas businesses originally charged 14pc to 17pc will get a one percentage point relief. These changes won't be applicable for loans that were classified as non-performing before the Novel Coronavirus (COVID-19) pandemic. Dashen has also taken a progressive step by cutting rental fees by 50pc for tenants in its 19 buildings for three months. Zemen, Enat, Wegagen, United, Abay, Awash and Debub Global banks have all fully or partially reduced interest rates on lending.
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