Ethiopia’s 76 years old financial institution is introducing Ethiopian Diaspora Mortgage Loan
Ethiopian Diaspora Mortgage Loan is Commercial Bank of Ethiopia (CBE)’s new product offered to non-resident Ethiopians and foreign nationals of Ethiopian origin ( the Ethiopian Diaspora)
It was Bacha Gina, who was recently appointed as president of CBE, who announced about it last week during what was said to be a consultative meeting held at Sheraton Hotel, in the capital Addis Ababa, according to news update published by the Bank itself.
“The launching of the product is part of the bank’s vision to serve and grow together with its customers,” the president is cited as saying. The requirements Ethiopian Diaspora need have to secure a mortgage loan from CBE seem to suggest that the Bank is targeting to build a solid market base in Ethiopian Diaspora.
However, some analysts seem to think that the launch of mortgage service to Ethiopian Diaspora is said to be partly linked to the effort to deal with foreign currency crunch in the country.
Ethiopia recently removed the $50,000 foreign currency deposit cap for diaspora Ethiopians. Now they can deposit any amount of foreign currency.
76 years old CBE, the leading state-owned bank with thousands of branches in the country, is currently said to have a working capital of over 300 billion Ethiopian Birr. It is also said to have about 67 of the total cash deposit in the country.
So what are the requirements for the mortgage loan?
Renewed passport for non-resident Ethiopians and work permit in the country of residence, are among the criteria according to information available on CBE brochure.
In terms of verification of the ability to afford the loan, the bank needs an employment letter showing annual gross and net income (or the option to this is an individual tax return). The bank also needs at least a one-year bank statement. The ability to pay at least 20% of the value of the house is another criteria.
Read the full brochure here
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