Banking

Ethiopia’s Credit Flood: What 1.3 Trillion Birr in New Lending Means for You, Banks, and the Economy

Ethiopia’s decision to lift the lending cap will unleash over a trillion birr in new credit opening doors for businesses and households long starved of financing. But without tight monetary controls, the same credit surge could fuel fresh inflation and put new pressure on borrowers. The real test is whether regulators can channel this liquidity into growth without overheating the economy.