NBE Governor, Teklewold Atnafu, told journalists on December 06,2010 that the lowest interest rate for savings has been increased from 4 percent to 5 percent effective December 2, 2010.
He said the measure was taken to guarantee continued financing, thereby contributing share for the efficient realization of the five-year Growth and Transformation Plan (GTP) and sustainability of ongoing speedy economic growth.
Teklewold added that the bank has also begun a new bid bond saving to encourage savings by low-income communities. The list price of a bond is 500 Birr.
Bid bond holders can use bonds as a collateral to get loans from banks.
The saving scheme for housing to be implemented at a pilot level at the Commercial Bank of Ethiopia (CBE) will make citizens owners of residential units within a short period.
The saving scheme for housing will be executed through a housing project to be established by the government. After the pilot test at CBE, the scheme will also be introduced at other banks.