Ethiopian media is reporting a feud between bankers as the country's industrialists face an increasing letter of credit (L/C) shortage.

According to the Addis Fortune, the president of state-owned Commercial Bank of Ethiopia (CBE) and the central bank governor are at loggerheads.

Confrontation

Earlier this year, CBE's president, Bekalu Zeleke, reportedly confronted central bank governor,Teklewold Atnafu, over a lack of foreign exchange to open L/Cs.

This confrontation, which apparently blamed the central bank for the L/C shortage, is said to have taken place during a full meeting of senior officials in the macroeconomic team of prime minister, Hailemariam Desalegn, who was chairing the meeting.

Counter criticism

The central bank governor is said to have countered the CBE president's criticism by saying that Ethiopia's commercial banks were to blame for the L/C shortage due to their inability to manage foreign exchange properly.

The CBE processes the majority of Ethiopia's L/Cs.

Under pressure

Meanwhile, the government is under pressure from an increasing number of industrialists who are threatening to close their factories unless a solution to the shortage of foreign currency, and consequently L/Cs, is found.

The prime minister reportedly closed down the confrontation between the two bankers at the meeting earlier this year and has arranged a smaller meeting in which the bankers and key stakeholders can work towards a solution.

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