The Commercial Bank of Ethiopia (CBE), the country’s largest state-owned bank, is set to receive its first major loan from the World Bank.
The USD 650 million performance-based loan is part of the World Bank’s Financial Sector Strengthening Project, which aims to bolster CBE’s financial capacity and support the government’s broader economic reform agenda. According to Capital News, more than half of the funding, at least USD 350 million, is expected to be disbursed during the initial round.
The Commercial Bank of Ethiopia qualified for the loan after meeting key conditions, including the issuance of a government bond and the restructuring of its board. The injection of funds is expected to ease the bank’s financial challenges, particularly those stemming from previous non-performing loans made to state-owned development agencies.
In addition to the World Bank’s support, the Ethiopian government is preparing to provide supplementary funding to further reinforce CBE’s capital base.
Source: Capital Ethiopia
