It is a deposit account designed for Ethiopians and foreigners of Ethiopian origin living in Diaspora to open and use foreign currency account with a bank in their home country.
Individuals and companies, that have head offices in foreign countries, can open this account.
The account can be opened in one of the following currencies only:
Deposit made in other convertible currencies such as Canadian Dollar, Saudi Riyal, Japanese Yen Australian Dollar, and UAE Dirham shall be converted to any of the above stated three currencies at spot exchange rate based on the preference of the account holder.
Types of Accounts
- Fixed (time) Deposit Account
It is an interest bearing account with agreed maturity date.
The minimum maturity period is three months.
It is opened with an initial deposit of US Dollar 5,000 or its equivalent in any of the above stated currencies.
Interest on such accounts shall be payable only if the account is maintained at least for the minimum period of three months.
Interest income on such accounts is tax-free.
The Bank will give a certificate for its customer when the money is transferred following the opening of the account.
The bank is allowed to set its own interest rate on non-resident fixed foreign currency account provided that the interest rate does not exceed the prevailing LIBOR rate.
- Current Account
It is operated by cheque book and/or pre arranged procedure.
Withdrawals can be made at any time by writing a cheque and/or a per-arranged procedure.
It can be opened with an initial deposit of US Dollar 100 or its equivalent in any of the above stated currencies.
Interest shall not be paid to a non-resident foreign currency current account.
An individual may open current account in only one of the domestic authorized bank. Whereas he/she may open fixed deposit accounts in more than one bank.
- Non-repatriable Birr Account
It is an account that may take the form of saving deposit that can be used for local payments only.
The transferred balance will be exchanged to local currency and deposited to the account.
Interest rate on such accounts shall be double of the minimum saving deposit rate set by the National Bank of Ethiopia.
Withdrawals in foreign currency shall not be made from such accounts.
- Eligibility Criteria
The following are eligible to use the Diaspora Account:
Non-resident foreign nationals of Ethiopian origin;
Companies owned by the above mentioned nonresidents and located outside the Ethiopian territory for more than one year;
Ethiopian nationals living and working abroad or in due process of living abroad for work for more than one year and who can produce authenticated documents.
- Opening of the Account
Ethiopian national/ foreigners of Ethiopian origin residing abroad can open the account in person & by post in his/her home.
Applicants who could not physically appear to open the account in the domestic banks can use the Ethiopian Embassies, correspondent bank or remittance service providers nearby to prove their identity.
Opening and crediting of a foreign currency account by power of Attorney Holders is not allowed. However, Power of Attorney Holders are allowed to withdraw from these accounts provided that the Power of Attorney explicitly empowers them to operate the account.
- Required Documents
Application forms properly filled and signed by the applicant and specimen signature.
For Ethiopians or foreign nationals of Ethiopian origin individuals, valid passport and/or identification card.
For Ethiopians or foreign nationality of Ethiopian origin who live in neighboring and Middle East countries should present authenticated residence and work permit from Ethiopian Embassy. Hence, all required documents should then be renewed every year and submitted to the bank.
- Closure of the Account
The following conditions may lead to the closure of the Diaspora Account:-
Upon the request of the account holder;
When the account holder starts to live in Ethiopia after completion of his/her stay abroad.
- Ways of crediting to account
Directly crediting to the account from place of residence through the bank’s SWIFT Address.
Foreign currency cash notes exceeding USD 3,000 or equivalent in any other convertible currency provided that the holder presented signed and sealed foreign currency declaration form from Ethiopian Revenue and Customs Authority.
Resident living in neighboring and Middle East countries are required to present signed and sealed foreign currency declaration form from Ethiopian Revenue and Customs Authority for less than or equal to USD 3,000 foreign currency cash notes or equivalent in any other convertible foreign currency to deposit in the account.
Check deposit that originates from abroad.
A transfer from another type of non-resident foreign currency account owned by individuals and or enterprises.
Receipt through international payment cards/credit cards/debit cards.
- If there is a need to credit the account through swift, please provide the following details.
Full name of the account holder with Awash Bank
Name of the Branch where the account is maintained
Swift code – AWINETAA
- Special Credit facility
Residential Home/Commercial Building Loan
Car Loan (New & Used)
The interest rates for the above credit type will depend on the modality of the contribution and repayment of the borrower in foreign currency.
- Interest Free Banking Loan Scheme
For Residential Home/Commercial Building
For Investment Project
- The Foreign Currency Accounts May Be Used To
Make local payment in Birr
Transfer to other foreign currency accounts which may include transfer to another foreign currency accounts in any of the authorized banks in Ethiopia.
Make foreign payments such as import and other Foreign Service Payments provided the account holder has the required business license to do so.
Effect transfer abroad
Withdraw for travel allowance of their requirements in cash notes or any other instruments upon presentation of valid travel document from their account.
Convert into a Birr account at the prevailing exchange rate.
Pay for authorized bank charges, if any, levied by the opening bank
Serve as collateral or guarantee for loans or bids.
Documents required to be fulfilled by Ethiopian Diasporas
- The applicant shall open Diaspora Saving/Current Account beforehand and save his/her equity contribution.
- Loan application Letter. The letter shall indicate the amount of loan requested, duration, repayment frequency, collateral offered, purpose of the loan, source of repayment and so forth.
- Copy of passport.
- Permanent residence permit (Mandatory only for those Ethiopians who live abroad but having Ethiopian Passport).
- Approved plan and title deed certificate of the house to be purchased or constructed.
- Copy of lease agreement and payment receipt (if the plot is lease hold).
- Employment letter showing annual gross and net income from employer.
- Copy of employment contract, if applicable.
- Tax return statement.
- Bank account statement.
- Certificate of Marital Status.
- If the applicant is a business person, he/she shall present:
– Financial statement for at least three years
– Renewed Trade License
– Trade registration certificate
– Tax payment certificate
- An agreement concluded with the real estate developer or the seller of the building.
- Proforma invoice in the case of automobile and personal loans.
- If the purpose of the loan is for purchase/construction of a residential or commercial building, the borrower shall at least cover 15% of the cost as equity contribution.
- If the purpose of the loan is for an investment project, the borrower shall at least cover 20% of the total cost of the project as equity contribution.
- The applicant shall raise the equity contribution, or periodic repayments or both in foreign currency.
- For project (investment) loans:
– Feasibility study
– BOQ (Bill of quantity) of the civil work
– Valid construction work permit
– Proforma invoice of machinery and equipments to be purchased
- Power of Attorney for loans to be requested by an agent. If the buyer is married, the power of attorney shall be given by the couples.
- Other documents as deemed necessary.
Purpose of the Loans Both Under Conventional and Interest Free Banking (IFB) Schemes
– For purchase, construction and renovation of residential house/commercial building
– For purchase of brand new/used car
– Personal Loan
– Investment Loan
The interest rates for conventional loans and the profit rate for financing under IFB schemes, will depend on the modality of equity contribution and the currency in which repayment of the loan will be made. If both the equity