Regulatory Alerts2023-04-25
Added · Updated
Limit on Loans, Repayment Period and Provisioning Requirement Directives No. MFI/28/2016
The National Bank of Ethiopia imposes a lending limit of 1% of total capital for single borrowers and 4% for groups, with maximum repayment periods of 15 years for housing loans and 5 years for other loans. Microfinance institutions must classify non-performing loans as substandard, doubtful, or loss based on days past due, requiring minimum provisioning of 25%, 50%, and 100% respectively. These directives repeal Directives No. MFI/18/06 and became effective on December 12, 2016.
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