Nib International Bank S.C. (NIB) has reported a significant loss of 2.9 billion Br, primarily due to extraordinary foreign exchange revaluation losses, this past Saturday, during its annual shareholders meeting at the Millennium Hall on Africa avenue, Airport Road. The bank faced substantial penalties amounting to 348.4 million Br. These penalties included a 251 million Br fine for liquidity shortages and a 97.4 million Br charge for violations related to Real-Time Gross Settlement (RTGS) payments. The bank has already settled these penalties. The previous management of the bank issued Letters of Credit (LCs) totaling over 80 million dollars without having sufficient foreign currency reserves. This mismanagement plunged NIB into a financial crisis, severely hindering its ability to meet international obligations and undermining trust with foreign banks. As a result, many institutions began to reject NIB's guarantee documents. Despite these challenges, NIB successfully settled its long-standing foreign currency debts in the most recent fiscal year. This included obligations to the Ethiopian Shipping & Logistics, the Ethiopian Petroleum Supply Enterprise's fuel LCs, and outstanding guarantees owed to HAWK International Finance & Construction Co. Ltd. Government-led economic reforms significantly caused the Birr to depreciate, at times reaching a value that was three times lower against the USD during debt settlements. This resulted in a foreign exchange revaluation loss of 4.4 billion Br. Consequently, potential profits were wiped out; Nib Bank could have closed the fiscal year with a 1.5 billion Br profit otherwise. The mismatch between the bank’s foreign currency assets and liabilities further intensified the financial strain.

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