Ethiopia-Economy

Ethiopian banks to take movable assets as collateral

APA-Addis Ababa (Ethiopia)

The National Bank of Ethiopia says it is preparing a draft bill whereby banks will take movable assets as collateral for lending.

Governor of the National Bank of Ethiopia, Yinager Dessie on Friday said the draft bill will also provide opportunity for those borrowers who can submit their creative ideas as collateral and be qualified for credits.

The draft bill will reportedly help to solve the financial constraints citizens who want to engage in various activities face due to lack of financial resources.

Dessie said the draft bill will provide opportunity for borrowers who possess movable assets but lack the necessary startup capital.

According to the governor, provision of credits by retaining movable assets as a collateral was drawn experience from other countries and he is confident that it will be effective at the earliest time possible.

Yinager further revealed that a revised bill under preparation will also avail the opportunity to foreigners of Ethiopian origin to participate in the financial sector of the national economy.

He noted that as part of the institutional reform program of the bank, ten regulations were annulled while three new draft bills are prepared for ratification.


MG/as/APA

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