Banks set to launch movable assets collateral loan scheme soon: NBE

Addis Ababa, December18, 2022 (FBC) – The National Bank of Ethiopia (NBE) has announced that a system to obtain loans from banks by pledging movable property will be launched in a short period of time.

NBE Governor, Yinager Dessie, stated that movable assets collateral loan scheme proclamation will be announced soon.

He said that the proclamation will especially benefit the rural areas of the country, indicating that banks in Ethiopia have only provided loans to less than 330,000 people so far.

The NBE Governor mentioned that compared to the populations size of the country, there are very few citizens who have taken loans, and to solve this problem, preparations have been completed to implement a proclamation to provide loan services by pledging movable property.

In this way, especially pastoralists and farmers can get loans by pledging animals, camels, private forests, land ownership books and land rights.

ENA’s report indicates that National Bank of Ethiopia is preparing to launch the movable property collateral loan scheme in Jigjiga, Somali region, very soon.