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Erudite AfricaCenter of Excellence
← Interest Free Banking Financing: Advanced

Problem finance management

Module 04 / 7 · 65 min

Move a deteriorating financing to workout on time, negotiate a realistic plan, and reschedule or restructure it without ever adding profit for extra time.

In this module you will learn to

  • Apply the conditions for transferring a financing to workout and run the workout process
  • Prepare and lead a recovery negotiation, including partial settlement through the voluntary sale of collateral
  • Reschedule a Murabaha or other sale debt within Sharia'h: no increase in price for extra time, any damage charge to charity
  • Recognize when new financing is a new, genuine transaction that needs SAC approval, and when legal action is triggered
  • Re-transfer regularized financings to performing on evidence, not on promises

Built on

  • Erudite Africa training outline: Interest Free Banking Financing, Level 3 Advanced (October 2026)
  • A typical Ethiopian bank's IFB financing business procedure (May 2025), unnamed: approval system, grading, follow-up, problem finance, write-off, portfolio management and exceptions
  • NBE Bank Corporate Governance Directive No. SBB/91/2024 (influential shareholder at 2%) and Risk Based Capital Adequacy Requirement for Banks Directive No. SBB/95/2025, issued under Banking Business Proclamation No. 1360/2025
  • NBE directives on interest free banking, large exposures, related parties, and asset classification and provisioning, in their current versions
  • AAOIFI Sharia'h Standards, including Sharia'h Standard No. 8 (Murabaha); the host bank's Sharia'h Advisory Committee rulings take precedence
  • IFRS 9 Financial Instruments: expected credit loss staging

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.