The Development Bank of Ethiopia (DBE) has beaten its projection
for selling the Grand Renaissance Dam bonds selling for more than one billion birr. Its six month projection was of selling six hundred million birr worth of bonds. The bank plans to sell 1.5 billion birr worth of bonds in the current 2011/12 fiscal year.
DBE in its six month report stated that it disbursed nearly five billion birr worth of loans, and 2.2 billion birr for various projects taking DBE’s total loan deposits to 13.2 billion birr while also collecting 992 million birr in outstanding loans. The bank has set targets in the Ethiopian fiscal year 2011/12 of disbursing 7.5 billion birr and collecting two billion birr from the loans it gave out. DBE’s total loan deposits in the last Ethiopian fiscal year 2010/11 were just below 11.2 billion birr.
Birhanu Taye, Public relations and communications officer at DBE, said the bank expects to collect its bulk of loans by the end of January. January has crucial significance for the bank as it is the month where decisions are made after the end of the first half of the fiscal year and the start of the second half of the fiscal year.
He also said the bank has been able to decrease the ratio of its Non-Performing Loans to 10.21 percent, the lowest it ever has been. By the end of this fiscal year DBE targets it to decrease to 8.7 percent. DBE in the last fiscal year 2010/11 had reached 11.67 percent below African Development Bank’s Association’s threshold target of 15 percent NPLs.
Another bright point of the bank has been its net profit. DBE made 95 million birr in just six months, 97 percent of the stated target. The bank in the previous fiscal year had generated 198 million birr in net profits.
DBE is in the process of loaning an undisclosed cable manufacturing turkish owned company three billion birr for its plant during the second half of this fiscal year. It has already loaned another Turkish company Else Addis, engaged in textile and garment industry, nearly two billion birr.
Previously DBE loaned over 1.5 billion birr to Habesha Cement Share Company. At the time it was its largest ever private sector loan. Habesha Cement plans to open the third largest cement factory in Ethiopia in 20 months.