My Opinion | 121281 Views | Aug 14,2021
Jun 11 , 2020
The Development Bank of Ethiopia (DBE) has slashed lending interest rates by four percentage points to 7.5pc for borrowers from hotel, poultry farming and processing and tour operation industries.
The state policy bank also cut its commercial lending rate for other sectors and industries to 8.5pc to support its clients during the Novel Coronaviours (COVID-19) pandemic, which poses challenges to businesses and the economy.
The Bank has been charging 11.5pc to 12pc interest on lending, depending on the type of project. In reducing the interest rates, the Bank will forgo 460 million Br in revenues, according to Haileyesus Bekele, president of the Bank, which currently has over 2,200 outstanding loans in its portfolio.
"Due to the pandemic, we couldn't collect 1.5 billion Br in loan repayments," he told Fortune.
DBE availed soft loans as working capital for industries engaged in export, including horticulture and textile companies. It also released a two-billion-Birr soft loan for consumer cooperative unions, helping them to buy basic food items from farmers and to distribute them to consumers. As of April, DBE, which has 49 billion Br in outstanding loans, has rescheduled loan repayment periods by three months to all of its borrowers.
My Opinion | 121281 Views | Aug 14,2021
My Opinion | 117381 Views | Aug 21,2021
My Opinion | 116092 Views | Sep 10,2021
My Opinion | 113798 Views | Aug 07,2021
Jan 18 , 2025
Adanech Abebie, the mayor of Addis Abeba, addressed last week a warm-up session for h...
A severe cash shortage squeezes the economy, and the deposit-to-loan ratio has slumpe...
Jan 4 , 2025
Time seldom passes without prompting reflection, and the dawn of 2025 should nudge Et...
Dec 28 , 2024
On a flight between Juba and Addis Abeba, Stefan Dercon, a professor of economic poli...
Loading your updates...