Ethiopia: Enat Facilitates Microfinancing for Women

Dec 2015
Ethiopia, December, 14 2015 - Enat Bank S.C. has signed an agreement with two micro-financing institutions, Poverty Eradication and Community Empowerment, and Eshet Micro Finance Institution share companies. The agreement will enable the institutions to borrow from Enat at reduced rates.

“Once negotiations are finalized on the rate of borrowing, Eshet and PEACE will get loans from the Bank,” said Enat’s President, Wondwossen Teshome. These loans, after a grace period of six months in which the institutions are expected to find suitable borrowers, are to be repaid in five years time.

Enat will not have a say on who gets to borrow, but the institutions will be obliged to lend as many female borrowers as possible. Therefore, loans to women that hire other women are encouraged.

Institutions that show a marked focus on loans to women, a ratio of over 30pc; and have registered a percentage of fewer than five bad loans will be considered for the opportunity. The Institutions, if willing, will then be able to put up their businesses up as collateral in order to get the loans.

“Women have not benefited as much from banking services,” Birtukan Gebre Egzi, vice president of Operations at Enat explained, “and the loan is Enat’s chance to access more women than our branch network would allow.”

Source : Addis Fortune

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