(ADDIS FORTUNE) – Regulators at the National Bank of Ethiopia (NBE) have issued a directive cutting down the reserve requirement of commercial banks to 5%, from the previous 10%.

This is the second decrease in the reserve requirement in two years, from the constant 15% three years ago.

Banks have also been given a 2-year grace period within which they are to restructure their loan portfolios, so that 40pc of loan advances comprise of short-term loans, which are due within one year.

The move by the central bank is believed to be in response to the liquidity crunch that is being experienced by banks that rely on medium (one to five year) and long-term loans.

Latest from Blog

Has Human Behavior Changed Since Man Was Created or Evolved?

By Belayneh Abate The world is stunned by the horror and the indescribable crimes committed in the notorious prisons and elsewhere in Syria for more than half a century. These types

Post-Assad Syria: Navigating Hope and Uncertainty

Dahilon Yassin The Syrian uprising against Bashar al-Assad’s regime which escalated into a civil war was violently crushed by the Syrian government in 2011. 13 years later, a surprise rebel offensive reached

The Fall of Assad: How Israel, Turkey, and Iran Are Redrawing Syria’s Geopolitical Map

December 12, 2024 Caleb T (Dr.) Map Showing Regional Alliances in the Syrian Civil War before the removal of President Bashar al-Assad’s regime Other nations in the Middle East dealing with political

Ethiopia: Knowledge and Accountability Matters (Part One)

Tsegaye Tegenu, PhD 2024-12-13 These days, I’ve been engaging you with discussions on researches and data related to the challenges facing our country. The three articles provided—“Ethiopia: Rapid Population Growth, Fragile Contexts

Abiy Ahmed’s Deception and Failure in the Turkey-Mediated Ethiopia-Somalia Agreement

Dr. MeKonnen Birru (birrum@uhd.edu) The announcement of the peace agreement between Ethiopia and Somalia mediated by Turkey marks a significant diplomatic development, but it also highlights a series of contradictions and potential

Abiy Ahmed’s Drone Strikes in Wollo, Bete Amara: A Tragic Toll of Over 30 Lives

Abiy Ahmed drone attacks in Wollo, Bete Amara, have resulted in the tragic loss of over 30 lives, including that of a five-year-old child, while more than 100 individuals sustained injuries. This

Ethiopia’s Fano Rebellion: The Amhara Resistance Reshaping the Horn of Africa

By Taha Sakr DNE Africa — Ethiopia, a nation with a long history of political upheaval, is now grappling with the resurgence of the Fano rebellion—a powerful Amhara-led resistance movement with deep

Deception, Centralization, Manipulation and Betrayal: The Complex Leadership of Abiy Ahmed Ali Paperback

by Dr. MeKonnen Birru (Author) December 10, 2024 Deception, Centralization, Manipulation and Betrayal: The Complex Leadership of Abiy Ahmed Ali Abiy Ahmed, the Prime Minister of Ethiopia from 2018 to present, emerged

The Legacy of Successive Dictators: The Fall of Bashir

Mengistu Musie (Dr) mmusie2@gmail.com Abu Mohammed was the name given to a militant who fought for years against the regime in Syria. After spending significant time in battle, he returned to Damascus,

Ethiopia United: A Call to All Ethiopians by Fano

This message serves as a rallying cry for the collective unity of all Ethiopians, emphasizing the importance of solidarity in the face of challenges. Fano urges every citizen to come together, transcending

A Comparative Analysis of Abiy Ahmed and Bashar al-Assad: The Fragility of Authoritarian Leadership

Dr. MeKonnen Birru Professor @ the University of Houston (birrum@uhd.edu) Abiy Ahmed, the Prime Minister of Ethiopia, and Bashar al-Assad, the ousted President of Syria, may appear vastly different on the surface,

A Love Letter to Ethiopia, A Promise of Unity: Emahoy Tsegue Mariam and her “Souvenirs”

By Solyana Bekele Dubbing her the “Mother of Ethiopian Classical Music,”—as grand as that epithet sounds—might still be doing Emahoy Tsegue Mariam Gebru and her haunting, ephemeral, and አስተካዥ compositions a disservice.

Perspectives to Understand and Approaches in Solving Problems of Ethiopia

Tsegaye Tegenu, PhD 2024-12-09 There are tools, steps, and lenses in understanding (diagnosis) and solving (intervention findings to) the problems facing the country. The first step in unpacking the challenges is called

Abiy Ahmed’s state-controlled media has exhibited a significant lack of commentary concerning the removal of Bashar al-Assad from power.

The choice made by Ethiopian state media organizations, including Fana Broadcasting and the Ethiopian Broadcasting Corporation (EBC), to refrain from covering the ousting of Syrian President Bashar al-Assad, while simultaneously addressing other

The Lesson from Bashar al-Assad’s Collapse

Michael Rubin The current inquiry pertains to which additional nations may be susceptible to the same factors that contributed to the downfall of Assad. The Insight Other Nations Should Derive from Assad’s

Foreign currency shortage forced Ethiopia’s central bank to cut bank reserves down to 5 percent

Leave a Reply Cancel reply

The Vatican Rally in NYC – by Tedla Asfaw

Tewodros Hagos: Winner of the First ‘Ethiopia Creates’ Art Prize