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.
Debre Birhan city announced that it was working to enable 24 industries start production within the second half of the current fiscal year. The city made the same announcement in November last year.
Debub Global Bank is set to enter the banking sector in Ethiopia as the 15th private bank after receiving a license from the National bank and a trade permit from the Addis Ababa Trade Bureau at the end of the month.
The bank expects to launch operations in July with two branches in Addis Ababa and one each in Hosanna and Hawassa according to Workku Lemma President of Debub. It is currently in the process of setting up offices, seeking companies to provide IT services and CORE banking solutions in particular as well as hiring staff.
The bank will require a commencement letter from the central bank which will conduct a field inspection to affirm that it is ready to begin operations.
Debub Global Bank Share Company is to enter the Ethiopian banking sector in 2012. The Bank has raised 286 million birr in subscribed capital and 150 million in paid up capital through the sale of shares. 5481 shares have been presented to the National Bank pending signature and verification by shareholders according to an official at the Bank.
Debub Global Bank expects to concentrate its activities in the South of Ethiopia where there exists untapped potential for investment said the official. The shareholders of the bank understand the potentials in the South and are interested in engaging in investment and trade in the area explained the official.
Ethiopian micro finance institution, Dedebit Credit and Saving Institution S.C (DECSI) reported it has disbursed 728.5 million Ethiopian birr loan during the past nine months.
