WHEREAS, it needs to make the collection of loan amounts, that banks provide for various commercial and industrial development activities, efficient and thereby create a conducive atmosphere for economic transactions;

WHEREAS, it takes rather too long a time to obtain judgement, from courts of law, for the sale of bank collateral and to subsequently have it executed;

WHEREAS, consequently, banking business, sustaining on interest payments on Joans it provides from public monies received by way of saving deposits, has been adversely affected;

WHEREAS, it is necessary to amend the Civil Code with respect to the sale of bank collateral;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: