Problem loans: classification, provisioning, workout and recovery

Module 03 / 5 · 70 min

Classify and provision honestly, then choose between rescue and enforcement by comparing what each option will really recover.

In this module you will learn to

Classify loans under NBE Directive SBB/90/2024 and explain non-accrual
Compute minimum provisions after eligible collateral deductions
Decide when a loan moves to workout and which tools fit the case
Compare restructuring and foreclosure by present value of recoveries
Explain foreclosure, write-off and post write-off follow-up

Built on

Erudite Africa training module: Level 3: Advanced Credit and Portfolio Risk (October 2026)
Erudite Africa credit training program overview and Ethiopian-context module (2026)
A commercial bank's Revised Credit Procedure Manual (2025), unnamed
NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/89/2024, SBB/90/2024 and SBB/95/2025
Ethiopian laws: Proclamations No. 97/1998 and 98/1998, Movable Property Security Right Proclamation No. 1147/2019, Financial Reporting Proclamation No. 847/2014

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.