Regulatory Alerts2019-04-25
Added · Updated
Capital Goods Finance Operational Modality Directives No. CGFB/10/2019
The National Bank of Ethiopia mandates that capital goods finance companies with paid-up capital of Birr 400,000,000 must allocate at least 60% of their outstanding portfolio to small and medium enterprises and 65% to the manufacturing sector. Lease interest rates are freely determined by company boards based on written criteria, with any rates and changes required to be submitted to the National Bank within five working days. Foreign companies are authorized to use invested foreign currency for importing capital goods but are prohibited from borrowing funds from the domestic financial system.