Regulatory Alerts2023-04-25
Added · Updated
Establishment and Operation of Treasury Bonds
The National Bank of Ethiopia requires all banks operating in Ethiopia, excluding the Development Bank of Ethiopia, to purchase Treasury Bonds with a five-year maturity. The allotment amount is calculated as 20 percent of each bank's monthly new loans and advances disbursed, with settlement required within 15 days after the end of the reference month. The directive imposes portfolio limits, mandating that short-term loans constitute at least 25 percent and revolving credit facilities not exceed 15 percent of total outstanding loans and advances. These rules entered into force on November 1, 2022.
Topics
monetary
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