The Ethiopian Ministry of Defense is to launch a financial wing. The ministry is undertaking preparations to launch banking operations during the current fiscal year according to Siraj Fegessa, The Minister of Defense.
The plan to launch the Army Bank was announced on Wednesday while Siraj presented the quarterly performance report and the current financial year to the Foreign Defense and Security Standing Committee of the Parliament.
The Ministry has established a steering committee established to discuss the issue with the National Bank to execute the plans for the Army bank said Siraj.
The Defense Ministry has been seeking to establish a micro finance enterprise for the last year to support military personnel to develop a saving culture and to own property he explained. The micro finance enterprise was not realized because of legal complications with procuring a license from the Central bank. The complications are not anticipated with a bank he noted.The Ministry of Defense has set up the ‘Defense Force Foundation’ to offer basic goods and services to members of the armed forces including the construction of houses this fiscal year said Siraj.
The National Bank is yet to receive a formal request for licensing but is responsible to provide the information for all parties interested in establishing a bank said Alemayehu Kebede, Head of Public Relations with the central bank.
Source: The Reporter
