Regulatory Alerts2007-02-25
Added · Updated
Directives to Transfer Duties and Responsibilities Related to Establishment and Operation of ECG Scheme from the NBE to DBE
The National Bank of Ethiopia transfers the duties and responsibilities for the Export Credit Guarantee Scheme to the Development Bank of Ethiopia, effective February 1, 2007. The Development Bank of Ethiopia issues guarantees covering 80% of outstanding loan balances and interest, while financing banks retain the remaining 20% risk. Financing banks must charge their prevailing lowest lending rate and pay an annual fee of 2% of the outstanding loan balance to the Guarantor. The directive repeals Directives Number SBB/38/2006 and establishes specific eligibility criteria, collateral requirements, and default suspension procedures for exporters.