Ethiopia's commercial banks secure half a billion dollars in loan facility from the African Export & Import Bank (Afreximbank).
The pan-African financier availed the facility through its scheme dubbed Trade Facilitation Program. It was launched three years ago with the aim of boosting the financial soundness of African banks that are unable to secure credit facilities because of stringent policies of international banks.
Yinager Dessie, the Governor of the National Bank of Ethiopia, confirmed that the facility will be availed to all commercial banks based on a directive approved a year ago to enable them borrow from foreign banks and lend it to businesses.
The facility is expected to boost the forex resources of the banks and ease the forex crunch that has been haunting businesses in Ethiopia, where the forex reserve barely cover two and half months of its imports.
