Regulatory Alerts2023-04-25
Added · Updated
External Loan and Supplier’s Credit (As Amended) Directives No. FXD/82/2022
These directives repeal Directive No. FXD/76/2021 and establish requirements for eligible borrowers, including exporters, foreign investors, manufacturing sector importers, and agricultural machine/input importers, to obtain approval and register external loans or supplier’s credit with the National Bank of Ethiopia. A debt-to-equity ratio not exceeding 60:40 is mandated for foreign investors, manufacturing sector entities, and specific agricultural importers, while suppliers' credit must meet minimum credit periods ranging from 180 days to one year depending on the borrower type. The document sets all-in-cost ceilings for external loans based on maturity periods, adding fixed percentages to benchmark rates like SOFR, ESTR, or SONIA, and prohibits government and banks from issuing guarantees for private loans. These rules enter into force on September 7, 2022.