Ethiopia central bank lifts suspension of collateralised loans

ADDIS ABABA (Reuters) – Ethiopia’s central bank has lifted a suspension of lending by commercial banks to their customers using collateral such as property, the bank said on Monday.

The economy has been shaken by a conflict that has lasted more than a year pitting Prime Minister Abiy Ahmed’s national army against rebellious forces from the northern region of Tigray.

When the suspension was imposed in mid-August, the government said it took the measure due to “economic sabotage”, without giving further details.

The restriction has now been “fully lifted”, the central bank’s communications department told Reuters, without providing more details.

The conflict in the north and damage to the economy from COVID-19 have weakened the local birr currency and sent prices of basic goods soaring. Some foreign firms have evacuated some of their staff, while others have closed shop.

(Reporting by Addis Ababa Newsroom; Writing by Duncan Miriri; Editing by Angus MacSwan)