Draft bill has been submitted to the parliament in the aim of issuing Special Government Bond which will serve as capital injection for Development Bank of Ethiopia (DBE). The bonds are worth 2.56 billion Birr and bear no interest.

The draft proclamation explains that the reason behind issuing the special bond is fulfilling the financial requirements of the bank. DBE will be engaged in development activities that are set for the Second Growth and Transformation Plan (GTP II) Period. The government will not be financing development activities as it has limited capacity.

In addition to this, the special bond will be used to raise the paid up capital of DBE. The draft document states the paid up capital is set to be increased to 7.5 billion Birr from 3 billion Birr.

The special bonds will be redeemed in 10 years following 5 years of grace period.

Source: The Reporter