Day: January 15, 2022
Coopbank has started Commodity Collateralized Financing for the first time in Ethiopia
- Cooopbank launches Collateralized Commodity Financing.
For the first time in Ethiopia, the Cooperative Bank of Oromia has launched Collateralized Commodity Financing (CCF). This loan is believed to have a wide range of benefits for the community as farmers are no longer obliged to sell their crops during low seasons. Depending on its mission and rooting its foundation in the community, the bank is expanding its horizons by providing a better quality of service to its customers.
The newly launched Collateralized Commodity Financing service is a short-term credit secured against stored commodities as collateral. The commodity can be kept in either a warehouse operator's or a borrower's warehouse.
The two forms of CCF services are the one-time CCF loan facility and the revolving CCF loan facility, which ensure that the bank can satisfy its clients.
Beneficiaries of the Collateral Commodity Financing service include stakeholders, farmers, processors, cooperatives, and dealers.
The product has been officially inaugurated today by financing the first warehouse receipt 000001 to Hetosa Farmers Cooperative Union.
