Ser. No.

Type of Document and Other Conditions required (Loan Processing Stage)

1

Opening Current Account (C/A)

1.1

Individual

  • ·         A memo from Loaning Department requesting Finance and Banking Department to open Current Account for a Customer;
  •          The Memo should further clearly indicate the name of person operating the Current Account;
  • ·         If the Current Account is operated by a representative, the legitimate representative should forward a photocopy of power of attorney, supported by Legal Services;
  • ·         The person who operates the Current Account should show a valid card for verification;
  • ·         Name of person who operates the Current Account, including the representatives, should not appear on delinquent list (for improper use of Current Account with other Banks, if any) as regularly circulated by the Supervision Department of NBE;
  • ·         The customer should fill out a Current Account opening form and gives specimen signature on two cards;
  • ·         A minimum initial balance of Birr 250= (two hundred fifty) for opening Current Account;

1.2

Organizations (Private of Public Associations)

  • ·         A memo from Loaning Department requesting Finance and Banking Department to open Current Account for a customer;
  • ·         The memo should further clearly indicate the name of person(s) operating the Current Account for and behalf of the legal entity;
  • ·         The legal entity should submit photocopy of memorandum of association and article of association each;
  • ·         If definite specifications are not stipulated for the power of the person(s) operating the Current Account in the memorandum of association and/or article of association, a copy of letter/minute of authorization for the said person (s) allowing him/her (them) to operate Current Account, supported by the resolution of the General Assembly;
  • ·         If the General Manager delegates the power of operating Current Account to somebody else (according to his/her power and responsibilities set forth in the memorandum of association), the authorized representative should submit a photocopy of power of attorney supported by Legal Services;
  • ·         The person (s) who operates the Current Account should show a valid ID Card for verification;
  • ·         The name of the shareholders as well as the person (s) who operate (s) the Current Account, including the representative should not appear on delinquent list (for improper use of Current Account with other Banks, if any) as regularly circulated by the Supervision Department of NBE,
  • ·         The person (s) operating Current Account should fill out a Current Account opening form and give specimen signatures on two cards each;
  • ·         A minimum initial balance of Birr 250= for opening Current Account

1.3

Issuance of Check Book Requisition

·The customer should fill out a check requisitions from and submit to the counter clerk, while at the same time either making cash payment or instructing the Bank to debit his/her account for the cost of check book, depending on the number of check leaves, as follows:-

  • ·Birr 10 for a 25 leaf check book;
  • ·Birr 20 for a 50 leaf check book;

2

Disbursement by CPO

·         The customer should show a valid identification card

·         If the customer desires to take the CPO to the supplier, the customer will provide their identification card and obtain the CPO. The identification card will be returned when the customer provides the receipt from the supplier.

·         If the supplier is receiving the CPO directly, the supplier will be provided with the CPO when they provide a receipt

3

 

Checklist for Import by Letter of Credit and CAD

A.Import -Letters of Credit (L/C)

I.Required Documents

The following documents are required for opening L/C:

a) Two copies of correct, legible and valid pro forma invoices showing clearly full description of goods, including :

  • ·         Supplier’s name and address,
  • ·         Quantity ,
  • ·         grade,
  • ·         quality,
  • ·         volume,
  • ·         measurement,  
  • ·         weight,
  • ·         brand name, etc;
  • ·         Mode of shipment, i.e., sea,  air, etc;
  • ·         FOB and freight costs separately;
  • ·         Unit and total price (including currency of transaction) of the goods at a named place of delivery;
  • ·         Terms of payment, i.e., L/C, CAD, T.T., etc;
  • ·         Price validity date;
  • ·         Port of loading and destination;
  • ·         Origin of goods;
  • ·         Manufacturer’s name, if the supplier is different;
  • ·         Delivery terms, i.e., FOB, C& F, etc;
  • ·         Delivery time;
  • ·         If the payment term is L/C, the pro forma invoice should clearly indicate whether it is an irrevocable confirmed one or irrevocable unconfirmed one;

a)  Two photocopies of valid (and renewed) investment permit  or foreign trade license or industry license, whichever is applicable;

b)    Two photocopies of insurance certificate plus debit note from licensed local insurance company, evidencing adequate insurance cover (usually CIF plus 10%), with DBE co-beneficiary;

c)    If the goods are not shipped by the Ethiopian carrier (in particular the Ethiopian Shipping Lines) due to the fact that it has no scheduled voyage/flight on the date of loading , the importer should produce a  waiver of written proof evidence for shipment by a foreign vessel;

d) Duly completed (typed), signed and sealed application form for letter of credit in two copies (available from Finance & Banking Department at Banking Division free of charge);

e) Foreign exchange application for import duly completed (typed), signed and sealed in five copies (which can be obtained at cash counter upon payment of 2 Birr per set);

f)  Certificate,  supporting documents,  approval letter or  stamp on pro forma invoice (whichever is applicable)  from:

·         Ministry of Health if the import of goods are  medicine and other related medical equipment;

·         Ministry of Agriculture for import of insecticides , pesticides,  and veterinary medicines;

·         Quality and Standard Authority for import of goods such as food items, matches, nails, galvanized corrugated steel sheets, scales, etc;

·         Road Transport Authority to import vehicles;

II. Other Requirements

a) Request for release of disbursement lodged with the Loaning Department and/or customer’s own deposit for 100% value of the pro forma value calculated in Birr.

b) The client has to cover the following commissions and charges for L/C up-front from his own source:

·         Exchange commission to NBE             1.5% of value of L/C

·         Opening commission                          0.6% of value of L/C

·         Service charge                                    0.65% of value of L/C

·         Confirmation commission                   0.5% of value of L/C

     (If the L/C is an irrevocable confirmed one)

·         SWIFT charge                                     Birr 300

B Import by Cash against Documents (CAD) at Sight Basis

I. Required Documents

I.I First Step: At the Time of Approval of Purchase Order

a)  The customer should lodge an application for importing goods by C.A.D.  or a memo  request from the Loaning Department;

b) In addition, a customer has to present a purchase order, prepared in a manner acceptable to DBE, in three copies to be approved by DBE for 90 days maximum

I.I  Second Step: At the Time of Processing Import Applications Upon Arrival of Shipping Documents

·         Foreign exchange application for import duly completed (typed), signed and sealed in five copies (which can be obtained at cash counter upon payment of 2 Birr per set);

II. Other Requirements (At the Time of Processing Import Applications)

a) Request for release of disbursement lodged with Loaning Department or  customer’s own deposit for 100% value of  the goods  shipped, based on the final commercial invoice, calculated in Birr;

b)  The client has to cover the following charges for CAD up-front from his own source:

·         Exchange commission to NBE             1.5% of value of goods

·         Service charge                                    1.25% of value of goods

·         SWIFT charge                                     Birr 40