November 4, 2024

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Commercial Bank of Ethiopia reforms

Commercial Bank of Ethiopia Would Have Collapsed Without Reforms, says PM

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Commercial Bank of Ethiopia (CBE) would have collapsed had there been no macro economic reforms, said the Ethiopian Prime Minister today.

Prime Minister Abiy Ahmed responded to questions from Members of the House of People’s Representatives today. Defending the newly introduced macro economic reforms he said that the reforms saved CBE from collapse.

“If this reform was not done, the Commercial Bank of Ethiopia would have collapsed,” he said.

“The bank was not managing its debt easily,” said the prime minister.

“The collapse of the Commercial Bank means that all 30 banks in Ethiopia have collapsed. The main Ethiopian bank is the Commercial Bank. To save it is to save the banking sector,” he added.

Ethiopian government of PM Abiy Ahmed introduced macro economic reforms in July. Since then Ethiopian currency birr has been falling against US dollar and other foreign currencies. People complain of rising cost of living, becoming more challenging after the devaluation of birr. But the Prime Minister defended the reforms saying that the results of these reforms will be visible next year.

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