ADDIS ABABA –The newlylaunched Diaspora Mortgage Loan will help securing sizable foreign currency from Ethiopians living abroad and foreigners of Ethiopian origin as it enables them to purchase or construct residential house at down payment, Commercial Bank of Ethiopia (CBE) said.
Speaking to The Ethiopian Herald, CBE Corporate Communication Director Belihu Takele said that the bank has been implementing various mechanisms and offering specialized servicesincluding Diaspora Accountto enhance the role and contribution of the Diaspora in the economy.
“Mortgage Loan has a role of killing two birds in one stone,” he said, adding that the scheme enables Ethiopians and foreigners of Ethiopian origin own residential house by contributing 20 percent of equity in foreign currency whilst supplement country’s forex reserves.
According to the director, CBE would finance up to 80 percent of the cost of the house to be purchased or CBE eyes mortgage loan to enhance forex reserves constructed in local currency and the Diaspora’s equity contribution made in three major foreign currencies namely USD, Great Britain Pound and Euro.
The Diaspora has to fully cover the mortgage loan within twenty years and the repayment is included 8.5 percent interest in the aforementioned foreign currencies, said Belihu, adding that applicants enable to settle the loan at any time without additional charge.
He noted that the bank introduced the service in the view to be part of the ongoing broad-based reform that is taking in to consideration the pivotal role of Ethiopians in the Diaspora in supporting the national efforts towards ensuring sustainable economic growth.
“Recognizing the role of the Diaspora in bringing development, CBE initiated the new service that avails the opportunity for Ethiopians living abroad and foreigners of Ethiopian origin obtain permanent residences here and taking share in Ethiopia’s wider business and investment opportunities.” Mortgage loan has not celling, Belihu stated, adding that the applicants could open saving account beforehand and save their equity contributions in person or through agent at a nearby CBE branch or through Ethiopian diplomatic missions.
Upon fulfilling their equity contributions, the applicants could lodge their loan request to any of the bank’s Consumer and Housing Credit Processing Units and Outlying District Offices, he added. Belihu said that the bankheld consultation meeting with members of the Ethiopian Diaspora to aware them about its activities, in particular benefits of the mortgage loan.
The reaction of the Diaspora is very encouraging. As to him ,apart from offering trainings in the scheme to some of the bank’s employees, CBE employs its official website, social platforms and publications to raise the Diaspora’s awareness on mortgage loan.
The Ethiopian Herald, December 4/2018
BY BILAL DERSO
