EFFORT emptied Development Bank of Ethiopia
Written by Abebe Gellaw   
Monday, 08 February 2010
Sufian Ahmed (Minister of Finance), Teklewold Atnafu (Governor of the National Bank), Bekele Feleke (President of the Commercial Bank of Ethiopia), Issayas Bahre (President of Development Bank of Ethiopia). Photo: Addis Fortune In mid-January, the ailing Development Bank of Ethiopia (DBE) declared once again that it is in need of rescue fund.

The business weekly, Addis Fortune, reported that the bank called on the National Bank of Ethiopia (NBE) to inject more capital1 to refill its empty cash registers.
Though the health of all state banks has been in dramatic decline within the last ten years, crisis-ridden DBE has been in much more serious trouble carrying a huge burden on its shoulders in the form of non-performing loans2.
Much of these loans are taken out by crooked “borrowers” like the Endowment Fund for the Rehabilitation of Tigray, which is infamous for defaulting on the multi-billion birr loans it has been raking out from state banks.
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