Whereas, there is a need to ensure solvency of microfinance institutions and enhance gradual transformation of the sector from donation based operation to stable equity base;

Whereas, promoting strong and viable micro finance sector in the country is essential;

Whereas, it has been found necessary to protect the interest of depositors, creditors and the public in general and promote public confidence in microfinance institutions;

Now therefore, pursuant to the authority vested in it under articles 14 (1), 14 (2/b) and 27 (2) of Microfinance Business Proclamation No. 626/2009, the National Bank of Ethiopia has issued these directives.