The International Monetary Fund (IMF) has characterized Ethiopia’s restrictions on private sector lending as “increasingly ineffective,” revealing that the majority of the country’s commercial banks have already breached the regulatory ceilings set by the National Bank of Ethiopia (NBE).
In its latest Country Report, the IMF disclosed that 20 out of 28 commercial banks had surpassed the central bank’s annual private credit growth limit by March 2026. The NBE had maintained this ceiling at a 24 percent year-on-year growth rate.
The IMF’s review of Ethiopia—released just a day after local policymakers announced sweeping financial reforms—originally indicated that the cap on private credit growth was slated for removal in December 2026.
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However, moving ahead of that timeline, the NBE announced on Monday, July 13, 2026, that it has already lifted the temporary credit cap on commercial banks following the latest meeting of its Monetary Policy Committee.
