Dark
Light
Today: March 16, 2025

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

February 20, 2013

(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.

Leave a Reply

Your email address will not be published.

Previous Story

The Vatican Rally in NYC – by Tedla Asfaw

Next Story

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

Latest from Blog

A plea to Eskinder Nega

By Allelign Sisay I recall one of your interviews about the Judgment of Solomon (1 Kings 3:16-28). In it, you urged Ethiopians to act in the spirit of the wise king and

Breaking the Chains of Tribalism

Dula Abdu Mohamud A. Ahmed (Prof.) as an ​ individual or an organization promoting Sustainable programs through the OWS Development Fund, located in the Somali region of Ethiopia suggests that ethnic federalism
Go toTop