USAID signed an agreement with Ethiopian private banks this week that will allow the banks to extend more credit to agriculture and health projects.

The agreement allows for loans up to 20.7 million US dollar for agro processing industries, health enterprises outside of Addis Ababa, small scale farmers and farmers co-operatives.

The three banks that signed the accord with USAID are Zemen, NIB and Abyssinia.

The agreement allows bankers to extend credit with reduced reservations like fewer lending limits, 50% reduced collateral requirements and lower interest.

The agreement also allows for support structures including incentive schemes, access to financial services and enhancing technical capacity.

Farmers and co-operatives in 83 Woredas targeted for value chain expansion under the country’s Agriculture Growth Program and the US Feed the Future Initiative are expected to benefit from this agreement.

Source: Ethiopian News Agency