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The Commercial Bank of Ethiopia (CBE) has announced that it is ready to provide over 100 billion birr loan to the private sector, agricultural inputs and public enterprises in the current budget year.
The lifting of the government’s debt ban will have a significant impact on the country’s economy. It is well-known that private and public banks have been forced to suspend their loans in order to control the economy and the black market. However, the lifting of the three-month ban will have a significant impact on the economy.
Commercial Bank of Ethiopia (CBE) Vice President of Credit and Resource Management, Muluneh Lema, told ENA that the bank is ready to provide over 100 billion birr loan this year.
He said 25 billion birr will be spent on the private sector, 30 billion birr on agricultural inputs and the rest will be spent on public enterprises.
The money will greatly stimulate the economy; It also contributes to job creation, he said. Muluneh said the ban on banks is a temporary solution as it is a temporary solution to stabilize the country’s economy. However, he said bank loans are needed to increase investment and create jobs. He added that one of the main functions of banks is to provide loans and that the profits from the loans will be repaid.
According to Muluneh, the lifting of the loan ban will also enable the completion of projects that have been suspended and create job opportunities. Accordingly, efforts have been made to release the loan funds required for the projects in particular, he said.
