Regulatory Alerts2023-04-27
Added · Updated
Circular No. MFISD-01-2020
The National Bank of Ethiopia temporarily suspends specific regulatory requirements for microfinance institutions from June 1 to September 30, 2020, to mitigate the impact of the Covid-19 pandemic. The directive encourages the renegotiation of performing loans not past due for more than 90 days as of March 31, 2020, and exempts institutions from holding provisions for restructured loans by suspending Articles 8.2.2, 8.2.3, and 9.2 of NBE Directives No. MFI/28/2016. It also suspends lending limits under Articles 6.1 and 6.2 of the same directive to allow one-time working capital advancements for existing customers who have reached their maximum borrowing limits. Additionally, the update of credit information for downgraded borrowers is suspended under Article 7.4 of Directives No. CRB/02/2019, though actual loan status must still be submitted separately to the Credit Bureau.