Banks Ordered to Temporarily Suspend Lending in Ethiopia
- Unclear which loan categories affected by Aug. 11 directive
- Banks suspend lending pending clarification from central bank
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The National Bank of Ethiopia asked all commercial banks to temporarily suspend providing loans backed by collateral, such as land and buildings.
The NBE’s directive follows findings that the money is being used on the black market, State Minister for Finance, Eyob Tekalign, said on Shefer FM radio on Thursday. The security authorities and the central bank are taking action as part of measures to address the issue, he said.