Deposit Insurance Fund Collects 1.6 Billion Birr in First Quarter 

Addis Ababa, November 2/2023 (ENA)- Ethiopian Deposit Insurance Fund (DIF) has collected 1.6 billion Birr of the planned 6 billion Birr in the form of premium during the first quarter of this Ethiopian budget year. 

The main objective of the Fund, which became operational in April 7, 2023, is to ensure the safety, soundness, and stability of the Ethiopian financial system. It also aims to protect depositors by introducing a deposit insurance fund. 

Briefing the media today, DIF CEO Merga Wakweya said the Ethiopian Deposit Insurance Fund collected the 1.6 billion Birr from financial institutions.

Stating the activities undertaken by the Fund, he stated that the government allocated an initial capital of 200 million Birr for DIF and signed Memorandum of Understanding with the National Bank of Ethiopia (NBE).  

Among the priorities of DIF include awareness creation about the fund, preparing strategic plan, modernizing the data collection using technology, and strengthening the fund by taking best international practices.  

The CEO appreciated Ministry of Finance, NBE, World Bank, banks and micro-finance  institutions, among others, for their support. 

Ethiopian Deposit Insurance Fund Board Chairman, Solomon Desta said the main aim of the fund is providing insurance coverage for deposited finance in banks and micro-finance institutions and contributing to financial stability by protecting depositors.  

 

The Fund is an institution with its own juridical personality that is accountable to the National Bank.

It is mandated with the power to, inter alia, determine initial and annual premiums, set coverage limits for insured money deposits which may not be less than Birr 100,000, make payments to eligible depositors to the extent of insured deposits among others.  

All financial institutions, except the Ethiopian Development Bnak, are members of the Fund.