Commercial Bank of Ethiopia announces improvement on its loan interest rate

The Commercial Bank of Ethiopia Loan Interest Rate Improvement Announcement. Better known as CBE, has increased the interest rate it has been using for years.

The Commercial Bank of Ethiopia (CBE) has announced a similar price adjustment on international banking services. The Bank has announced that it will implement the price adjustment on all its services.

According to the bank, the price of most of its services has increased by no more than one percent, but the interest rate has been divided according to the type of loan and the interest rate has risen.

According to the commercial bank of Ethiopia loan interest rate improvement hike, the interest rate for corporate loans has risen from eight percent to nine percent. Housing loans have been increased to 10.5 percent by one percent.

According to the service price adjustment, there has been a significant increase in the foreign exchange service sector. The foreign exchange service fee for the 90-day service has increased from 5.5 percent to 9.5 percent.

Some products are offered at a lower cost for foreign exchange services in this service. Fertilizers, pharmaceuticals, sugar and oil are the products that are expected to serve at a minimum of 4.5 percent. Apart from the 4.5% foreign exchange service charge required for these products, other foreign exchange services will be treated according to the new rate.

The Commercial Bank of Ethiopia (CBE) still has the lowest rate in the industry.

Commercial Bank of Ethiopia loan interest rate Improvement also stated that the decision of the Bank is due to the fact that most of the services are held at a price that does not take into account the current market conditions, which is having a negative impact on the Bank.

Elaborating on the issue, Commercial Bank of Ethiopia President Abe Sano said the amendment has been made to reduce the burden on the bank’s revenue and expenditure.

He also said that the government has announced a price increase of less than one percent for most services in order to make small adjustments to low or free services and bring them closer to the market.

To encourage exports, however, export-related loans have reportedly reduced interest rates, as well as the cost of foreign exchange to supply government-supplied drugs.

The Commercial Bank of Ethiopia (CBE) has a capital of 49.6 billion birr. The total number of branches reached 1,825.

In addition to the Commercial Bank of Ethiopia Loan Interest Rate Improvement, the bank reported a pre-tax profit of 3.1 billion birr in the first quarter of 2013, a significant decrease compared to the same period in 2012. In the first quarter of 2012, the pre-tax profit was 6.1 billion birr.

Commercial Bank of Ethiopia announces improvement on its loan interest rate

More on Commercial Bank of Ethiopia Loan Interest Rate Improvement

The Commercial Bank of Ethiopia (CBE) still has the lowest rate in the industry.