New Bank to Transfer Equity to Berhan Bank, Ethiopia
Hawassa Bank, still under formation, has requested that National Bank of Ethiopia transfer of equity contributions of shareholders to Berhan International Bank. The promoters for Hawassa decided on the merger with Berhan following the increase in capital requirement for banks by the central bank last September.
Berhan Bank is more active and its management has agree to work on the merger in good faith said Solomon Afework, Promoter of Hawassa Bank.
A Memorandum of Understanding for a merger was signed a month ago but the move was rejected by the National Bank which stated that such a merger between a bank still under formation and one that is already established is not allowed in Ethiopian law according to Solomon.
