In August 2021, the NBE suspended all commercial banks from providing loaded backed by collateral. It also ordered the freeze of disbursement of loans already approved. This restriction has impacted the economy as loan demand has risen in recent months.
The 3-month ban was set up to stop economic misuse & also to stop the black market. Following this, CBE has announced that it will lend more than 100 billion ETB to the private sector, agricultural inputs, & public enterprises.
Due to this, the country is expected to boost its economy and have more job opportunities.