Good News Ethiopia

By Dawit Taye-

Addis Ababa (November 7, 2009) – It appears to be more than good news for flower producers and exporters, who have been enjoying the special support of the government, to secure a close to one billion birr ($79,137,688) debt relief for up to three years from the Development Bank of Ethiopia (DBE).

DBE’s debt relief to 42 flower sector investors comes after they appealed to the government that they are unable to pay their debt following a decline in demand due to the global economic crisis.  

Tsegaye Abebe, chairperson of the Ethiopian Horticulture and Flower Producers and Exporters Association, told The Reporter that the bank has started sending the letter approving the debt relief as of last week to the beneficiaries.

A team comprised from DBE, various ministries and other government sectors assessed the appeal for rescheduling of debt repayment based on the size of farms, debt repayment track record and the status of the outstanding debt, which explains the disparity in the relief period for the beneficiaries, he said. The National Bank of Ethiopia, and the Ministry of Agriculture and Rural Development were represented in the team.

Earlier flower producers and exporters had agreed to pay their debt within five years. However, owing to the global financial crisis and other reasons they asked the government to offer them the debt relief through their association.

Tsegaye said that although it is good news for florists, they have to give due attention to increasing the quality of products, and adopt improved ways of production by minimizing costs as well as expanding their market across the globe.

“I hope that like the other private banks will take similar measures in order to help the sector be strong in the future,” Tsegaye added.

Meanwhile, the world flower market is showing an improving trend after two-month slow. In the past two weeks the market has registered a price hike ranging between 20 and 25 percent. In Europe, a stem of flower is now sold for 0.30 euro, up from 0.20 euro some two months ago.

Source: The Ethiopian Reporter