June 2012 - Addis Ababa, Ethiopia
The long awaited agreement on Credit Guarantee for the development work of MEDA has been signed between MEDA-Ethiopia and Bunna Bank on Friday June 15, 2012 at the Bunna Bank Head Office with strong sense of collaboration and team work.
The process of finding the right Bank for facilitating a credit Guarantee for MEDA's development work in Ethiopia was a very difficult and energy consuming task as Mrs. Solyana Amsalu, MEDA's financial service specialist, recalls. She started the work by looking and discussing with Private Banks since last summer. All the searching work for finding Banks ended with no positive answers due to the existing liquidity issues, the reserve requirement by the central banks and other related issues.
Having all the issues on the table, the recently established Bunna Bank which commenced its operation on October 10, 2009 with subscribed & paid up capital of Birr 308 million and Birr 156 million, respectively, showed interest to work with MEDA in credit guarantee work because of their aspiration to work on development areas and also to introduce new product and also interested to work on such area as Mrs. Amsalu observed.
The formal activities with the Bank started last March when Kamran Abdullayev from Head Quarter visited MEDA Ethiopia and come up with the first draft of the document with Solyana. Then after the dialogue continues with the Bank with strong push and follow up of MEDA's financial service specialist. After a lot of back and forth, the agreement finally signed.
On the event, there were Loren Hostettler, Country Project Manager, Mrs. Tigist Belachew, Program manager and Mrs. Solyana Amsalu, Financial service Specialist representing MEDA . There were Mr. Eskeza credit analysit, Mr. Endalkachew Mihieretu, International Banking division Manager, Mr. Wubetu Assefa, Legal Service Manager and Mr. Tadesse Chinkili, Credit Department Manager and also representing the president of Buna Bank who couldn't be present on the event due to an urgent meeting at the central bank, representing Bunna Bank.
During the meeting, Mr. Hostettler, open up by appreciating the Bank's interest and effort to make it happen and also for arranging such an event with short notice. Ms Belachew also added the experience she had before in such area and confident enough to work in collaboration and to learn from each other. Mr. Chiliki of Bunna Bank thank again for MEDA's interest to work with them and also debrief the whole activity that has been done so far with MEDA by mentioning the hard work of Mrs. Amsalu. He thinks that the work is promising and looking forward to its implementation. Mr. Eskezia, who is a credit analysis that has been working with Mrs. Amsalu for the last few months on the case, added also his happiness for the finalization of the document and promised to make it happen.
There were a discussion and a question/answer time on the expectation from and responsibilities of both parties. Both team responded for their concerns and question. Ms Belachew added that, there will be a launching event after this where things will be clearer and go directly into implementation. Mrs. Amsalu closed it by expressing her gratitude and appreciated the hard work of the Bank with all the push and high demand of MEDA and express her joy for such a great first step achievement and looking forward to work with the Bank.
The agreement was signed by country project manager of MEDA and Credit manager of Bunna Bank with a group picture taken afterwards.
Communications Officer, MEDA Ethiopia