Assessment On Challenges Of Project Financing: A Case Study On Commercial Bank Of Ethiopia
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Date
2017-06
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Addis Ababa University
Abstract
Capital as a requirement for economic growth is satisfied mainly by the development of financial
sector in an economy. This research was undertaken with the objective of assessing the
challenges of project financing in Commercial Bank of Ethiopia. To this end, the study employed
quantitative and qualitative research approach; descriptive design to construct meaning from
extracted data collected from primary and second sources through survey and document review.
This was supplemented by available books, documents, published and unpublished thesis.
Accordingly, the study came up with the findings that challenges CBE was facing in project
financing emanate from three categories. The study, hence, concluded project financing
challenges in CBE were external environment specific (data/information, financial
intermediaries, economic & political environment and infrastructure), borrower specific
(character of the borrower, nature of the project and management problem of the project
promoter) and bank related (character of the bank, credit policy and procedure and credit
appraisal & approval) in decreasing order of mean value of major category. From the reached
conclusion in the study, it is recommended the bank and concerned parties should take
respective actions to tackle the challenges timey.
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Keywords
Project financing challenges, Commercial Bank of Ethiopia, Capital as a requirement