Addis Ababa: The Ethiopian Development Bank (EDB) revealed that it has reduced bad loans from 57 percent to 6.5 percent through reforms it carried out in the last five years.

The bank provided 32 billion birr loans and made 5.5 billion birr profit in the concluded Ethiopian fiscal year.

Ethiopian Development Bank President, Yohanes Ayalew told ENA that it was possible to enhance the skills of the employees, improve relationship with customers, and for the bank to have a healthy and sustainable financial capacity through the reforms over the past five years.

Accordingly, the capital of the Bank has increased from 2.2 billion birr to 40 billion birr in the concluded Ethiopian Fiscal Year, he stated, adding that this surge in capital solidified Bank’s position as the country’s second-largest financial institution next to the Commercial Bank of Ethiopia.

The president disclosed that the EDB reduced its bad loans from 57 percent to 6.5 percent through the reforms it has carried out in the last five years.

Y
ohanes recalled that the bank that used to approve 900 million birr for loans through lease financing prior to the introduction of the reform five years ago, approved 27 billion birr for lease financing in the concluded fiscal year.

The bank’s loan for the manufacturing industries also increased from less than 4 billion birr to 32 billion birr this concluded year, he added.

Before the reform, the loan approved by the bank was not more than 10 billion birr, and in the last fiscal year, 57.8 billion birr was approved for loan service, he noted.

The bank collected nearly 16 billion birr in loans in the last financial year.

The bank made a profit of 5.5 billion birr in the multi-faceted improvement work carried out in the last financial year.

The bank’s achievements in loan portfolio improvement and financial performance underscore its vital role in driving Ethiopia’s economic development. By providing essential financing to businesses and industries, the EDB continues to contribute to the country’s grow
th and prosperity.

Source: Ethiopian News Agency