Economy
Call for Policy Reform on Interest Rates and Repayment Periods for Agricultural Machinery Loans
The Reporter (Amharic) · 2 hours ago · Read the Full Story on The Reporter (Amharic)
AI SUMMARY
Stakeholders have called for policy reforms to lower interest rates and extend repayment periods for agricultural machinery loans due to the financial pressures faced by farmers.
- Caleb Service Farmers House PLC handed over 11 combine harvesters to customers, financed by the Development Bank of Ethiopia.
- The Development Bank of Ethiopia allocated 5.5 million Euros to provide agricultural machinery to 50 clients.
- Out of the total machinery, 31 Claas brand units are supplied by Caleb Service Farmers House while New Holland units are supplied by MOENCO.
- The machinery acquisition falls under lease finance where the client covers 20 percent and the bank covers 80 percent.
- The current loan interest rate is 18 percent with a five-year repayment period.
- A combine harvester can cost around 27 million Birr following shifts in the market-based exchange rate.
- Caleb Service Farmers House founder Tesfaye Teklehaimanot proposed extending the loan repayment period to at least ten years.
- Claas Group CEO Jan-Hendrik Mohr stated that the family-owned manufacturer provides machinery to 120 countries and emphasizes ongoing technical support.
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