2merkato

The National Bank of Ethiopia ordered all commercial banks to freeze accounts of borrowers who have not submitted Tax Identification Numbers as of the 26th of December.

All commercial banks were instructed to freeze the current accounts of borrowers maintained in the bank until they present TIN as requested, by a letter from the National Bank addressed to all presidents of commercial banks.

The Commercial Bank of Ethiopia and the Construction and Business Bank, both state managed institutions, have reached an agreement to establish an integrated card payment system that will allow customers to withdraw money from common Automated Teller Machines.

The Commercial bank currently operates 58 ATMs and is waiting on delivery of 400 more it ordered a month ago. The construction bank is also expecting delivery of 20 ATMs ordered at the same time allowing the two banks to have almost 500 ATMs between them.

The Memorandum of Understanding establishing the arrangement signed earlier this month requires the CBB to pay fees to the commercial bank for the use of its technology.

Major Ethiopian banks decided to raise their paid up capital to meet the directive by the central bank. The banks could offer up to 2.3 million shares worth 2.7 billion birr in total.

Nine of the 14 banks operating at the present expect to meet the target sum of 500 million birr by contributing their dividends as well as offering equity on the market.

Awash, Dashen, NIB, United and Wegagen banks have already met the requirements with Wegagen topping the list with 779.3 million Br in paid-up capital.

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.