Feb 23 , 2019
The National Bank of Ethiopia (NBE) announced that it has drafted a new proclamation that will enable banks to take movable assets as collateral for loans and advances. The bill is on its final stages and will be legislated soon, according to Yinager Dessie (PhD), governor of the National Bank of Ethiopia. “It is expected to ease the problem of access to finance,” Yinager told journalists last week during his first media briefing since he became a governor. Movable assets such as vehicles and equipment can be used as collateral to access loans from the financial institutions. In the existing procedure, financial institutions have been taking fixed assets of the borrowers as a guarantee with the most probable value of a loan or an advance recoverable from the sale of the collateral during the loan or advance.
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