DBE Provides First Ever Loan to Financial Institutions
Development Bank of Ethiopia (DBE), the state policy bank, has for the first time financed a quarter of a billion Birr to four private commercial banks and four microfinance institutions.
The Bank signed a quarter of a billion Birr loan agreement with an interest rate of seven percent with the financial institutions to finance small & medium enterprises (SMEs) early this month.
The loan agreement was signed between Teshome Alemayhu, vice president for lease financing of the Bank, and the presidents of the eight financial institutions.
Awash, Enat, United, and Birhan International were beneficiaries of the loan as were the micro-finance institutions Addis Saving & Credit Association, Amhara Credit & Saving Association, Washa Micro Finance, and Vision Saving & Credit Association.
The loan is aimed at assisting financial institutions to increase access to credit for eligible SMEs with the necessary working capital, according to Kifle Haileyesus, communications director of the Bank, who added that such support will continue into the foreseeable future. Some of the fields of focus are agro-processing, manufacturing, hotel and tourism and construction sectors