Economy
Proposal Made for Selected Government Institutions to Use Interest-Free Finance
The Reporter (Amharic) · 3 hours ago · Read the Full Story on The Reporter (Amharic)
AI SUMMARY
The National Bank of Ethiopia has proposed a new policy framework allowing selected government institutions and state-owned enterprises to utilize interest-free financial options for their projects.
- The National Bank of Ethiopia proposed a new policy framework for selected government institutions, state-owned enterprises, and public fund management bodies to use interest-free financial options.
- The proposal is part of a draft National Interest-Free Finance Strategy allowing entities to use interest-free bonds like Sukuk and mutual insurance like Takaful.
- State-owned enterprises are encouraged to use interest-free Sukuk as a capital-raising tool to diversify funding sources for development projects.
- The draft proposes enabling state-owned assets to receive Takaful coverage and introducing Sharia-compliant alternative pension plans for employees.
- The NBE draft strategy includes six key legal frameworks, notably the establishment of a National InterestFree Finance Champion Body and a dedicated office to oversee implementation.
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