Commercial Bank of Ethiopia Launches Mortgage Loan to Ethiopian Diasporas

Addis Ababa, October 07, 2018 (GMN) - The Commercial Bank of Ethiopia (CBE) has announced the commencement of Mortgage Loan to Ethiopian Diasporas (non-resident Ethiopians and foreign nationals of Ethiopian origin).

The bank in a statement issued on Friday said the persons targeted are non-resident Ethiopians and foreign nationals of Ethiopian origin.

CBE chief Bacha Gina, during a stakeholder meeting held earlier this week in the capital Addis Ababa, said the product was part of the bank’s vision to serve and grow together with its customers.

“He added that the mortgage loan would benefit non-resident Ethiopians and foreign nationals of Ethiopian origin. Credit Quality Assurance Director, W/ro Emebet Melese explained to the Diaspora how the loan could be facilitated.

“Business Development Vice President,  Ato Yishak Mengesha, on his part briefed the Diaspora about the bank’s background, where it stands now and its vision,” the CBE statement added.

The bank is the country’s largest commercial bank which as of June 2015 was estimated to be worth about 303.6 billion Birr in assets and held approximately 67% of deposits and about 53% of all bank loans in the country.

Details on CBE’s mortgage loans for Ethiopians in Diaspora

As part of Prime Minister Abiy Ahmed’s economic reforms, there has been a bold move to allow significant private involvement in a hitherto state-controlled economy.

In late August, Abiy after chairing a Macroeconomic Committee issued a number of forex regulation adjustments for a country that has long suffered a dollar crunch.

The Committee raised the interest rate yield for “27% NBE bill” that requires private banks to purchase the National Bank of Ethiopia (NBE) bonds from the current 3% to 5%.

They also removed the current Diaspora account limit of USD 50,000. Diaspora account holders can now save unlimited amount in Forex.

NBE’s purchase of 30% of the forex earnings of the private banks will be at mid rate instead of the current buying rate.

Per their decision, the list of business that is eligible to accept payments in foreign currency has also been expanded to include the airport, telecom services, chartered private airlines, guest houses, specialized clinics & hospitals serving foreign clients. (CBE)