By Staff Reporter
ADDIS ABABA – (BORKENA) – Governor of the National Bank of Ethiopia (NBE), Mamo Mihiretu said that monetary policy reform has been made at national level. The governor said in a statement he gave to local media outlets here today that a Board of Directors of the National Bank of Ethiopia has made strong policy reforms to keep the inflation under control, the Ethiopian News Agency (ENA) said in its Amharic report.
Keeping the limited ceiling of domestic credit growth at 14 percent is one of the decisions made in connection with the monetary policy reform. This decision enforces other commercial banks to adjust their loan growth as per the stated ceiling. The Governor, Mihiretu, has also made official that the policy decision made on direct loan allowed to the government should not exceed one third of the amount given in the previous fiscal year.
The Governor has also said that when banks face shortage of funds, the interest they pay for the credit facilities they receive from the National Bank of Ethiopia will be raised from 16 percent to 18 percent. Mamo Mihiretu further said that the previous 70/30 share split of the foreign currency transfer obligation of exporters engaged in key export businesses has been reformed to 50/50. As per the decision, the banks will deposit 50 percent of the total foreign exchange earnings to the National Bank.
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