National Bank issues directives to support farmers

Addis Ababa, September 10, 2020 (FBC) -The National Bank of Ethiopia (NBE) has announced the introduction of directives that enable small farmers to use movable properties as collateral and also benefit from micro-insurance.

Announcing the two directives yesterday, NBE Governor Yinager Dessie said using movable properties as collateral is critically important for the livelihood of farmers in general and the agriculture sector in particular.

The actual execution of the new directives will be a game changer to transform the agriculture sector which employs over 80% of the total population, he added.

According to him, though the agriculture sector has been given priority by the government in the past, it has been excluded from financial backing.

“We have now prepared the Collateral Registry and the directives will be implemented this coming Ethiopian New Year,” ENA quoted Yinager as saying.

Accordingly, banks will allocate 5% for small farmers using movable properties as collateral starting from September, 2020, it was learned.

Livestock, crops, landholding certificates, and forest, among others, are among collateral properties to be taken as financial sources in terms of credit.