Mekelle፡Telaviv, Nairobi, Pretoria, London, (Tigray Herald)
Addis_Abeba City Admin, CBE sign MoU to deliver housing for 41,000 gov’t employees
The Addis Abeba City Administration and the Commercial Bank of Ethiopia (CBE) have signed a memorandum of understanding (MoU) to provide housing for 41,000 government employees through a joint 25/75 housing scheme, with officials saying the project aims to “address the housing problems” of public servants who do not own homes, state media reported.
Kidist Woldeiorgis, head of the city’s Housing Development Bureau, said the memorandum of understanding is intended to support civil servants by enabling them to purchase homes through a co-financing arrangement. “Government employees are expected to save 25 percent,” she said, while “75 percent will be provided as bank loans.”
She added that the housing initiative will prioritize teachers and noted that the loan repayment period will span 20 years, according to state media.
CBE President Abe Sano said the bank plans to allocate “120 billion birr in loans” to finance the scheme. State media quoted him as saying that the loans will be offered at a 14 percent interest rate, and that the agreement includes “three years of construction time” followed by “a one-year loan payment grace period.”
Abe claimed the arrangement would allow public employees to become homeowners “at affordable prices” and said the financing mechanism is “free of unnecessary interest.”
Source: AS
