The Construction and Business Bank of Ethiopia is to receive a 500 million birr capital injection from the Public Financial 
Institutions Supervising Agency.
The bank’s proposal for capital was approved at the end of the last financial year with preconditions attached. A primary condition of the agreement included expanding the number of CBB branches and the bank has plans to open 50 more branches in the current budget year to meet this criteria according to sources.
The bank was able to open 30 new branches in the first months of the current financial year and another eleven will soon commence operations allowing the bank to access the 500 million birr capital injection noted sources.It is to be remembered that the CBB had planned to provide loans for the construction of residential houses, reentering the housing cooperative sector as a long term loan service provider after some time.
The plans put on hold due to delays with the capital injection are expected to be effective in the next budget year. It is expected that the bank’s primary focus at that time will be to support the construction of residential housing to support cooperative house building. It is yet not know what percentage of total costs the bank will offer on loan and interest rates on the loan will be determined by the National Bank of Ethiopia.
Source: Capital
