Licensing and Credit Information Fees of Capital Goods Finance Companies Directive No. CGFB/13/2022

NATIONA L BANK OF ETHIOPI A
/ ADDIS ABABA
FIS/MFlSD/429/2022
October 5, 2022
All Capital Goods Financing Companies
Addis Ababa
Subject: -Directive No. CGFB/13/2022
Enclosed herewith, please find "Licensing and Credit Information Fees of Capital Goods Finance Companies Directive No. CGFB/13/2022" for your information and strict implementation. Sincerely yours mergaf Wakweya Director, Microfmance Institutions Supervision Directorate CC:

H.E The Governor
Vice Governors
Senior Advisor
Advisors
All Directorates
National Bank of Ethiopia

NATIONA L BANK OF ETHIOPI A
/ ADDIS ABAB A
LICENSING AND SUPERVISION OF Capital Goods Financing Business Licensing and Credit Information Fees of Capital Goods Finance Companies Directive No. CGFB/13/2022 Whereas, it is essential that the National Bank has to improve its service quality with a view to satisfy its customers; Whereas, it is found necessary to revise existing fees as well as introduce some new ones on National Bank services provided to capital goods finance companies; Now, therefore, in accordance with powers vested in it under Article 4 (4a) and 18 (4) of Capital Goods Leasing Business Proclamation No. 103/1998 as amended of the Capital Goods Leasing Business (Amendment) Proclamation No. 807/2013, the National Bank of Ethiopia has issued this Directive.

1. Short Title
   This Directive may be cited as "Licensing and Credit Information Fees of Capital Goods Finance Companies Directive No. CGFB/13/2022."

2. Definition
   ».
   For the purpose of this Directive, unless the context provides-otherwise:
   2.1. " aggregate loans and advance" mean the sum of all types of loans and advances being
   approved and disbursed to a borrower at one time, or simultaneously;
   2.2. "capital goods finance company" means a company licensed by National Bank to
   undertake capital goods finance business.
   2.3. "National Bank" means National Bank of Ethiopia.

3. Scope of the Directive
   The provisions of this Directive shall be applicable to all Capital Goods Finance Companies operating in Ethiopia. "<•»

4. Fees
   4.1. A company applying to obtain new capital goods finance business license shall pay:
   4.1.1. investigation/application fee of Birr 50,000 (fifty thousand Birr ), and
   4.1.2. licensing fee of Birr 100,000 (one hundred thousand Birr).
   4.2. A capital goods finance company applying for renewal of its business license or
   replacement thereof shall pay renewal fee of Birr 100,000 (one hundred thousand Birr).
   4.3. A capital goods finance company shall renew its business license every year between
   August 1 and October 3 1 .
   4.4. A capital goods finance company applying for a branch license or replacement thereof,
   shall pay licensing fee of Birr 4,000 (four thousand Birr) per branch.
   4.5. A capital goods finance company applying to obtain credit information shall pay:
   i) no fee for aggregate loans and advances less or equal to Birr 1 00, 000 (one hundred thousand Birr) requested, ii) Birr 1,000 (one thousand Birr) for aggregate loans and advances more than Birr 100,000 (one hundred thousand Birr) and less or equal to Birr 1,000,000 (one million Birr) requested, and iii) Birr 2,000 (two thousand Birr) for aggregate loans and advances more than Birr 1,000,000 (one million Birr) requested.

5. Repeal
   5.1) Article 9 of Directive No. CGFB/02/2013 is hereby repealed.
   5.2) Sub-article 10.1 of Directive No.CftB/02/2019 is hereby repealed

6. Effective Date
   This Directive shall enter into effect as of 5th day of October 2022. ,P',D>