Ethiopian banks are set to raise loan interest rates by 3 to 5 percent for both new and existing borrowers, as reported by Sheger Radio. This adjustment will see rates increase from the current range of 17–19 percent to 20–22 percent. Borrowers, including those financing home purchases or importing goods, are expected to face significant challenges as a result of the hike.

While the increase aligns with contractual agreements tied to economic conditions, experts caution that it could place additional strain on the economy. The higher rates are anticipated to reduce market activity and lower import volumes, potentially passing increased costs onto consumers. This development underscores growing concerns about the broader economic impact of rising borrowing costs.

Source: linkUpbusiness
@Ethiopianbusinessdaily