The National Bank of Ethiopia has issued a new directive raising the minimum paid up-capital of micro-finance institutions, Fortune reported.

The directive requires micro-finance institutions to raise their minimum paid-up capital of 2 million Ethiopian birr, effective October 1, 2013.

Previously the National Bank requires 200,000 birr paid-up capital for micro-finance institutions.

Micro-finance institutions currently in operations are expected to reach the new paid-up capital requirement within five years period according to a benchmark amount the Bank set for each year.

Micro-finance institutions under establishment are require to fulfill the paid-up capital requirement before launching their operations.

Currently there are 33 micro-finance institutions in Ethiopia with 2.89 million clients and 1,244 branches.

Source: Fortune