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The Ethiopian government announces today the dismissal of two senior presidents of state banks. The Ethiopian Agency of Financial Institutions has appointed new presidents for the Commercial Bank of Ethiopia (CBE) and the Development Bank of Ethiopia (DBE).
Bacha Gini, who was vice-president of the Oromia Co-operative Bank, became president of CBE, replacing Bekalu Zeleke. Mr. Haileyesus Bekele became the president of DBE. Mr. Haileyesus Bekele was president of the Construction and Business Bank of Ethiopia, became part of the CBE a few years ago, according to a report from local media affiliates. ;state.
CBE, is the largest bank in Ethiopia half of the overall market of the country's banking sector. With approximately 66% of total deposits, 31.5% of capital, 52.6% of credit and 36.3% of the branch network in the sector, the Bank dominates the banking sector in Ethiopia.
In recent years, especially after its launch on a huge government housing program, CBE's reputation has been diminished after the delay of the house's delivery period and the controversies surrounding the construction.
The Development Bank of Ethiopia was established in 1909 promoting agriculture and trade. After going through different names under different regimes, DBE is structured with the priority of public and private finance and investments in the government's priority sectors.
Over the past two decades, DBE has been known to give unsecured loans for projects such as agriculture, agribusiness, pharmacy, chemistry, textiles, leather and leather , among others.
An investor, local, foreign or joint venture can get a loan of 70% to 85% of his total investment. For the projects of DBE
Meanwhile, this has also led to misuse of money by fake investors and party affiliates and politically exposed people. Some of the reports that show the abuse of the DBE loan include agricultural projects stranded in the Gambella area, ten state sugar projects, among others.
The new presidents of the two banks are expected to solve some of this crisis the institutions have fallen mainly as a result of a fatal mix of politics and business.
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