May 9 , 2020
The Council of Ministers has approved a bill that will boost the paid-up capital of the state policy bank, the Development Bank of Ethiopia (DBE), to 28.5 billion Br. After receiving the capital injection, DBE, which has been operating with 7.5 billion Br in capital for years, will have the second-largest capital next to the Commercial Bank of Ethiopia (CBE). The bill was approved during the Council’s special session that was held on May 7, 2020. This raise is part of the Bank’s five-year reform plan, which is aimed at strengthening its provision of finance to investors. It is also undergoing a massive restructuring. Over the past couple of years, the Bank has been grappling with a higher rate of non-performing loans, which reached up to 40pc in 2018.
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