Development Bank of Ethiopia (DBE) announced it aims at extending 112 billion Birr loan during the second Growth and Transformation Plan (GTP II) period.

According to Dr. Behailu Kassaye, Corporate Communication Director of the Bank, the loan is going to be for supporting investment projects in the private sector and small and medium enterprises (SMEs). Out of the total 112 billion Birr, 72 billion Birr is allocated for agriculture, manufacturing, agro processing, mining, energy and construction industries. The rest is for SMEs transformed to medium level.

In the past 8 months of the current fiscal year, DBE approved 5.7 billion Birr of loan for different investments, Berhanu said. He furthered that the Bank extended 4.4 billion Birr loan in the same period of time.

Behailu noted that DBE’s amended credit policy aimed at supporting local investors in government priority areas. According to him, the existing 70/30 loan arrangement is changed to 75/25 ratio to solve capital shortage of local investors.

Source: Walta Information Center