Development Bank of Ethiopia's bad loans reach high of 39.4%

Non-performing loans at the Development Bank of Ethiopia have increased from 25% to 39.4% in the past fiscal year. The figure is far higher than the standard set by the National Bank of Ethiopia at 15% maximum.

Low productivity of commercial farmland that the bank extended loans to, intermittent rainfall, the forex crunch, management problems and political unrest in the country are reported to be the primary causes of the accelerating NPL ratio, according to a performance report by the lender.