Development Bank of Ethiopia (DBE) plans to extend more than 2 billion Birr as loan for large-scale agriculture investments. The loan is expected to be disbursed until end of June.

It has been a year since DBE suspended giving loans in the aim of rectifying errors and gaps and also prepare new directive.

According to the new directive, an investor that plans to request loan for large scale agricultural investments needs to have 7.5 million Birr capital. Requests not meeting these requirements would be treated as lease financing, Hailu Misganaw, Corporate Promotion and Relations Acting Director at the Bank, explained.

In order for loan requests to be approved, investors should have crop insurance, he noted.

DBE would give priority to provide to investors that submitted loan request letter in the past fiscal year, Hailu furthered. There is also plan to include new applicants in the scheme.

It was in the previous month that DBE put in place new system and started accepting loan request.

Source: Fana Broadcasting Corporation