DBE Has Introduced Contract Based Lending toManufacturers of Pharmaceutical Products

Development Bank of Ethiopia is under taking continual changes in order to discharge its responsibility of supporting the national development agenda. Accordingly, the Bank is improving its services and amending credit policies from time to time aligned with the prevailing market demand and pertinent policy directive of the government so as to address the need of customers and stakeholders.
Pursuant to the policy initiative from the Federal Government of Ethiopia, local manufacturers of pharmaceutical products are entering into agreement with the Ethiopian Pharmaceuticals Fund and Supply Agency (EPFSA) to get an advance payment of 30% of the bid award from each budget year. The remaining 70% of the bid award amount is assumed to be covered from banks in the form of loan. Aligned with this, therefore, the Board of Management (BOM) of the Development Bank of Ethiopia has decided on June 19, 2010 to entertain the working capital loan request of existing customers engaged in manufacturing of pharmaceutical products on the frame of contract based lending based on the tripartite agreement made between EPFSA, the Bank and the borrower.