Home News We Are Fighting on 8 Fronts – the PM’s speech

We Are Fighting on 8 Fronts – the PM’s speech

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Furthermore, on current circumstances. Reacting to the inquiries and analysis, DBE president, Yohannes Ayalew (Ph.D.) said “As it is featured in the Auditor General’s report, the facts demonstrate that clients [who look for rent financing] have been mentioned to contribute in any event 20% of the rented machine cost as insurance.” He added, “This prerequisite, truth be told, was received of late subsequent to being disappointed with the increment in the measure of the uncollected rent charge.”

He further showed that from the outset, when the rent financing started, the first mandate requested clients give in any event 20% as working capital, while the bank covered 80% for machine buys. Later on, Yohannes clarified, the bank had to present the questionable 20% which fills in as an insurance account to balance the increment in the number of tenants who neglected to settle their charges.

“Clients’ carelessness and their inability to settle installments constrained the administration to present such a necessity, albeit a choice has been made to lift it,” Yohannes added. Going further, he conceded little consideration was given by the executives over the significance of giving appropriate direction and preparing clients, their own workers, and partners about rent financing.

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