Ethiopian Commodity Exchange (ECX) said it was set to commence a new service which allowed traders to use warehouse receipts which would be given out by the organization as collateral when they needed short term loans from the banks. ECX plans to start the new service this fiscal year. The warehouse receipt which will be issued by ECX will contain the serial number, name and location of the warehouse, license number, date of receipt and duration of storage, name of commodity, quantity, quality, grading, and standardization. The depositor endorses the warehouse receipt in favor of the bank and takes a loan against the commodity. Once the bank receives the loan from the buyer, the commodity can be released.

Source: Ethiopian News September 20, 2018 09:56 UTC