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Reprints
The National Bank of Ethiopia has issued a new directive that allows the establishment of reinsurers, reports The Reporter.
The minimum capital required to attain a license for a reinsurer will be 500 million Ethiopian birr ($25.7 million).
Once local reinsurers are established, domestic insurers would be banned from obtaining reinsurance from foreign reinsurers unless another directive permits it.
At present, Ethiopian Insurance Corp. maintains outward reinsurance contracts with foreign reinsurers.
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