Ethopia: Banks get more lending room as central bank loosens annual credit limit

Addis Abeba –The central bank has eased the annual credit growth restrictions on commercial banks, enabling financial institutions to extend more loans to their clients.

In a statement released on 31 December, 2024, the National Bank of Ethiopia (NBE) disclosed that the annual credit growth ceiling was raised from 14% to 18%.

The credit growth limit, introduced in August 2023, was part of the government’s strategy to curb inflation to below 20% by June 2024, with a further target of 10% by June 2025.

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