The Development Bank of Ethiopia has pulled out of a 1.52 Billion Birr Loan agreement made with Habesha Cement according to sources.

The bank had approved the loan which was expected to cover more than 70 percent of the funding of the proposed cement factory more than a year ago.

The bank pulled out of the argument it had endorsed in September 2011 on the basis of its inability to disburse money at this time. The bank also withdrew from loan commitments to five other companies at the same time citing similar reasons at the same time according to sources. The bank is said to have pledged to assist in seeking foreign financing if these companies should seek such.

It is to be remembered that Pretoria Portland Cement and South Africa’s Industrial Development Corporation paid a 21 million US dollars for an almost half share of Habesha Cement SC, last July.

Pretoria Portland will pay 12 million US dollars in cash for a 27% percent share of the Ethiopian cement factory while the state owned SAIDC will pay 9 million for an additional 20% according to a statement released by PPC.

Source: The Reporter