NBE Increases Interest Rate - National Bank

NBE Increases Interest Rate

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.

The National Bank of Ethiopia was established in 1963 by proclamation 206 of 1963 and began operation in January 1964. Prior to this proclamation, the Bank used to carry out dual activities, i.e. commercial banking and central banking.

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E-mail:nbeinfo@nbe.gov.et
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