September. Residential loans will be offered mainly in Addis Ababa, Ethiopia, sources at bank said yesterday. Having obtained capital injection from the Public Financial Institutions Supervising Agency (PFISA), the bank has decided to set aside budget for residential housing cooperatives to solve its capital shortage. The bank’s request for a 1.5 billion birr capital injection was submitted to the PFISA in 2008.
However, how much percentage of the construction cost or purchase value the bank will offer as residential loan is yet to be revealed. Previously, the client had to contribute at least 30 percent of the construction cost and the bank would take care of the balance.
The interest rate for the loan will be fixed based on the declaration of National Bank of Ethiopia.
The Construction and Business Bank is planning to expand its services and to open about 50 new branches in Addis Ababa and the regional towns. Currently the bank has 39 branches in Ethiopia with the majority of the branches in the capital city.
Source: Capital
