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Dr. Yohannes Ayalew, who has served as the president of the Ethiopian Development Bank (DBE) for the past four years, has officially submitted his resignation, according to media reports. His departure marks the end of a tenure during which he introduced several reforms aimed at improving the bank’s operations. However, the bank has also faced criticism for not ensuring equitable distribution of resources across the country during his leadership.
Following his resignation, Mr. Getachew Waqe has been appointed as the interim president, stepping in to manage the institution while a permanent replacement is sought.
Dr. Yohannes’ appointment as DBE president began on September 12, 2020. He succeeded Haileyesus Bekele, who had resigned two days prior. Dr. Yohannes, previously the vice governor and chief economist of the National Bank of Ethiopia (NBE), was also an executive director at the Ethiopian Development Research Institute. Before assuming the top executive position at the Development Bank, he had to leave his role on the board of directors.
It is worth noting that Yohannes’ appointment followed a pattern in which former NBE vice governors have taken on the leadership role at DBE, as evidenced by Getahun Nana’s tenure as the bank’s president before Haileyesus Bekele.
The DBE has been struggling with high levels of non-performing loans (NPLs), particularly from loans disbursed to commercial farms in Gambella. Despite improvement, the NPL ratio stood at 25% in the last fiscal year, down from 40% the previous year. Under the leadership of Tegegnework Gettu, the bank’s board, in collaboration with management, developed a five-year reform plan designed to shift the source of finance from the central bank to bond bills and development partner funding.
With Dr. Yohannes’ resignation and the appointment of Mr. Getachew Waqe as interim president, the future leadership of the DBE remains uncertain, as the bank continues to implement reforms aimed at addressing its longstanding financial challenges.
