Proclamation To allow Movable Assets as Security for Credit Will Be Announced Soon: National Bank of Ethiopia

A proclamation that enables individuals or entities to use their movable assets as security for credit will be announced soon, Governor of the National Bank of Ethiopia, Yinager Desie said.

Ministries of Finance, Planning and Development, Revenue are discussing with regional planning and revenue bureaus in Arba Minch town.

The Governor of the National Bank of Ethiopia, Yinager Desie explained about the movable property security right proclamation.

Banks operating in Ethiopia have provided loan to about 330,000 persons while microfinance institutions have provided to over 6 million citizens, he stated.

According to the governor, the number of people benefiting credit is low mainly due to the fact that there was no legal framework that allowed movable property to be used as security.

Hence, Yinager pointed out that preparations are finalized to implement the movable property security right proclamation.

He emphasized that pastoralists and farmers will be able to get credit services by using their animals, and land right as security.

Banks and microfinance institutions are undertaking preparations for the successful implementation of the proclamation that will be officially launched soon in Jigjiga.

Source: Ethiopia News Agency