October 5, 2024

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CEO of oromia bank

Oromia Bank Announces Major Loan Initiative for Ethiopian SMEs

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Oromia Bank, established for 15 years ago, has raised 54 billion birr in the form of savings. The bank has announced that it will provide 26% of the 43.5 billion birr for loans to small and medium enterprises. Of the 43.5 billion birr offered for loans, an average borrower will receive 1.5 million birr from the Oromia bank.

CEO Oromia Bank stated that 14.5 billion birr had been allocated to over 7,000 small business owners, with an additional one billion birr directed towards the agricultural sector.

Moreover, the CEO of the bank, Mr. Teferi Mekonen, confirmed that loans will be distributed to the customers of the Oromia bank and high borrowers. High borrowers are those who will borrow 5 million birr on average.

The Bank confirmed loan provision to the manufacturing, export, construction, and services sectors which created various job opportunities. Mr. Teferi Mekonen said that the ratio of the loan which is not paid on time is between 1.6% to 2%.

Last week, Oromia Bank announced that it has signed a 1 billion birr contract for the construction of the second phase of the Center of Excellence that will be built in Gelan Oromia. The CEO said Oromia Bank is currently undertaking the construction of the Gelan Center of Excellence and Convention, including its new headquarters.

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