Central Bank approves another stimulus package for the hospitality sector

The National Bank of Ethiopia (NBE) approved a new financial package for the hospitality sector in response to the Coronavirus pandemic that has disrupted the tourism sector for almost a year. The newly approved financial support, which will be provided in the form of a loan, is an extension of the 3.3 billion Birr stimulus package which was applicable until November 10, 2020, and approved following the 6.6 billion Birr financial support request made by hotels. 

According to sources, commercial banks can take as much as three billion Birr in fresh loans from the Central Bank to extend the loan to businesses engaged in the hotel and tourism sector. An interest rate of 5.5 per cent will be levied on the loan, marking a 5 per cent increase from the previous rate of five per cent. The adjustment was made following the requests of commercial banks, which have been complaining that they were forced to incur service costs, as they were being forced to borrow the money availed by the Central Bank at five per cent interest rate without additional fees.

FDR Ethiopia Embassy ( Source)