Cabinet Amends Defense Force's Proclamation, Endorses Establishment of Stock Market

Addis Ababa, December 23/2020( ENA) The Council of Ministers on Tuesday amended the National Defense Force proclamation and endorsed a law to allow the establishment of a stock market in Ethiopia. 

The decision to amend the defense forces proclamation is made with a view to strengthen the Ethiopian National Defense Force.

According to the council of ministers, the establishment of stock market is believed to increase saving in the national economy by creating alternative sources of saving mechanisms to the people.

In a country where there are strong stock markets, manufacturing companies would be able to sell shares and debt securities in order to easily address their financial needs, the council indicated.

The Council during its 93rd ordinary meeting discussed on the defense force's revised draft proclamation and on the draft law to allow the establishment of stock market and referred them to the House of Peoples' Representatives for approval.

The council has also endorsed a regulation providing for an insurance mechanism for bank deposits.

“We’ve endorsed the establishment of a stock market, a regulation providing for an insurance mechanism for bank deposits and amended the defense forces proclamation with a view to strengthen the ENDF,” Prime Minister Abiy said.