Regulatory Alerts2017-04-25
Added · Updated
Minimum Paid Up Capital Requirement Directives No. CGFB/07/2017
The National Bank of Ethiopia establishes minimum initial paid-up capital requirements for capital goods finance companies based on the maximum financing amount per lessee. Companies targeting lessees with requirements up to Birr 1,000,000 must hold Birr 200,000,000, while those targeting lessees with requirements not exceeding Birr 30,000,000 must hold Birr 400,000,000. Companies already in the pre-application phase may start with Birr 200,000,000 but must reach the Birr 400,000,000 threshold within two years of commencing operations. Failure to meet the higher capital requirement subjects companies to sanctions including restricted operations, license suspension, merger, or closure.