Commercial Bank of Ethiopia introduced increase and decrease of interest rates and service charges
February 12, 2021
State-owned bank, Commercial Bank of Ethiopia, on Friday announced changes to interest rates and services fees for international banking services.
President of the Bank, Abe Sano, has a press statement to explain the introduced changes.
The intention is to fix imbalances in spending and revenue, minimize financial pressure on the bank and make it similar to the rats in the market, it was said. Services delivered for free and/ or for low fee are adjusted, as reported by ENA.
Interest rates will be increased by not more than one percent – exact figure not specified. It will be applicable on short, medium and long-term loans.
In the realm of foreign trade, with the aim to incentivize the sector it is said that the bank introduced interest rate reduction for loans. A Government agency that is importing pharmaceuticals is also getting discounted rates of interest.
Rates for importers in the oil industry are left untouched in order not to exacerbate prices hikes which will affect the public, as explained by Mr. Abe Sano.
It was said that the bank was offering more than 73 percent of the services either with low rates or free.
It is to be recalled that Commercial Bank of Ethiopia, which has thousands of branches across the country, introduced interest debt relief as business were affected by the Coronavirus situation.
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