Ethiopian Commercial and Development banks told to purchase savings bills
The state-owned Commercial and Development banks of Ethiopia have been advised they must start purchasing savings bills.Speaking to the Addis Fortune, sources revealed Chief Economist and Vice-Governor of monetary stability at the National Bank of Ethiopia (NBE) Yohannes Ayalew wrote a letter to the institutions last Thursday (April 7th).
He stated they must spend 27 per cent of their total disbursements made between July 8th 2010 and February 28th 2011 on the products.
The NBE instructed almost all commercial banks to do this on April 1st, although the Commercial and Development institutions were originally exempt.
According to the publication, bank executives were "dismayed and shocked" at the news and requested clarification on the payments, as well as more time.
This comes after the NBE announced that from April 4th, the lending cap that had been imposed on all commercial banks since the beginning of 2009 will be lifted.