Following the crisis brought on by Covid-19, hospitality firms across the country requested a loan extension from commercial banks. In a letter to the National Bank of Ethiopia (NBE), the Ethiopia Hotels and Related Service Provider Employers Federation demanded that the regulator urge commercial banks to issue loans to firms in the hospitality industry, such as hotels and tour companies.
Since the first incidence of COVID-19 recorded in March 2020, hotels have seen a significant drop in room occupancy rates, while businesses in the industry have seen a drop in revenue due to a decrease in the number of tourists. Two stimulus packages were made available by the NBE in response to the crisis. In June 2020, it made ETB 3.3 billion available in soft loans, followed by another ETB 2.7 billion in similar financial packages by the end of the year. The central bank is yet to decide the extension period.
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