Commercial banks continue to assist businesses


In response to the fight against COVID 19 pandemic and to alleviate the economic crises commercial banks continue to aggressively take different measures to help highly damaged businesses.
Debub Global Bank has cut 2 to 2.7 percent interest rate to its customers working in the hotel and tourism sector and 1.9 to 2.4 percent for those in the horticulture sector. According to the statement the reduction will stay up to June 30, 2020.
Berhan Bank also announced its reduction of interest rate by up to 4 percent for sectors including the agriculture, hotel and tourism, manufacturing, export and construction sectors. According to the bank the reduction is depending on the sectors starting from May 18.
As stated by doing this the bank will lose about 100 million birr income. Also the bank has cut off additional payments for other services including letter of credit service charge and decided to reschedule and postpone loan settlement period.
Lion International Bank has also announced the removal of penalty on those who do not pay their loan on time because of the pandemic and cutoff 0.5 up to 5 percent interest rate for customers that are involved in the hotel and tourism sector, agriculture, transport and construction sectors. As stated the bank also cut additional service charges. According to the bank the bank will lose 21 million birr because of these measures.
To mitigate the damages of the pandemic on industries that have fallen as far and as fast as tourism, hospitality and the horticulture sector banks are taking different measures.
Last week four other banks including Enat bank, Wegagen Bank, Abay Bank and Dashen Bank announced to reschedule loan settlement and cut interest rates for sectors like hospitality and tourism for three months.