Zemen Bank a pioneer in lowering loan interest rate for the horticulture industry now adds the hospitality, tourism and manufacturing industries in its scheme.
Dereje Zebene, President of Zemen Bank, said that his bank has cut the interest rate for hospitality, tourism and manufacturing industries from 0.5 to 3 percent.
He said that the cut will continue for two months until the end of the financial year, June 30.
“From the total loan portfolio of the bank the three sectors took 42 percent or four billion birr,” Dereje said.
Even though he declined to give the exact figures that his bank will lose because of the interest cut, he said it is significant. “It is unethical to use it for advertisement and disclose clients business secret, but we will lose millions of birr,” Dereje says adding “it is our responsibility to take such measures to tackle this uncertain situation.”
Such measures will contribute for healthy loan settlement in the future since customers will keep their capacity as normal because of interest rate cut, according to the president.
Zemen Bank froze three months interest rate for the horticulture industry which is worth half a billion birr.
“Totally the loan portfolio that gets interest rate cut at Zemen is 4.5 billion birr,” Dereje added.
He reminded that the decision of the bank is considering the status of the bank that will not affect it.
Such decision is besides the measure of rescheduling loan for customers. The bank stated that it is providing loan reschedule for any interested customers since the central bank supports the idea.
“We do want health business for our customers due to that we are providing supports as much as we can,” the president stated.
From the total portfolio that is included on the interest rate cut the 2.7 billion birr is directed to the manufacturing sector.
Few weeks ago Zemen donated five million birr to fight the outbreak and one million birr that will go directly to the Ministry of Health for the support of health workers.