The volume of loans mobilized by the Development Bank of Ethiopia during the just ended Ethiopian budget year showed an increase of 44% against what it had mobilized in the previous year said Isayas Berhe, President of DBE.
The board of the bank had approved a 7.5 billion loan for the year in review and the bank has managed to mobilize 70% of the total that was approved.
The bank has been able to mobilize more than 5.5 billion birr during the reporting period with the 1.5 billion birr loaned to Habesha Cement being the single largest loan arrangement for the year. 90% of loans that were disbursed by the bank went to local companies.
The board has approved a sum of eight billion birr that will be made available for loan in the current financial year with the bank anticipating mobilizing 6.3 billion birr.The bank had written of non-performing loans that it had accumulated over the last twenty to thirty years during the last two years with the NPL dropping to 7.5% after years of double digits said Isayas.
The bank was able to reduce the level of NPL by foreclosures, collections, rescheduling as well as write offs. The DBE has been writing of a number of non performing loans after formulating a write of policy he explained.
Source: Reporter
