The Development Bank of Ethiopia (DBE) announced it has amended its credit policy, Fana Broadcasting Corporate (FBC) reported.

According to the former policy 70/30 arrangement, the Bank used to provide 70 percent credit if both foreign and local investors contribute 30 percent of the total investment capital to engage in priority investment areas.

Esayas Bahire, President of DBE told FBC that the new policy requires local investors to contribute only 25 percent and DBE will cover the balance.

The new 75/25 arrangement only applies to local investors Esyas stated. He also said the new policy would attract more local investors, especially in the manufacturing sector.

For foreign investors to secure loan from the Bank they need to contribute 50 percent of the total investment, the new policy requires.

The 50/50 arrangement aims at avoiding shortage of money and exhorts foreign investors to engage in big investment sectors.

Source: Fana Broadcasting Corporate