Assessment Of Agricultural Project Financing In Development Bank Of Ethiopia

The study aims to assess agricultural project financing in development bank of Ethiopia. To achieve this objective, descriptive research design is used and data has been collected mainly through primary source using questionnaire and interview from both borrowers and Head office credit performers. Based on the questioner collected from 170 purposive selected credit performers and borrowers from Head Office agricultural projects that are default loans (Non-performing loans), data analysis and findings are presented. For data analysis, descriptive statistics including mean, frequency and percentages were used and processed through computer loaded SPSS software version 23. The study concluded that borrowers developed culture of loan diversion, focus only on loan approval, absence of specialized credit assessment system for agricultural financing, and practice off-site monitoring. Therefore the researcher has recommended addressing these problems, the bank should formulate an appropriate policy option to curb loan diversion, apply modern work system to select systematically eligible & potential customers, restructure the organization to bring sector based financing specialization, and conduct field visit against off-site monitoring.

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