Workout and restructuring

Module 03 / 5 · 70 min

Design workout strategies that preserve value: viability assessment, restructuring options, NBE treatment of restructured loans, debt-to-asset swaps, foreclosure and write-off.

In this module you will learn to

Move a problem loan from watch list to workout through the bank's escalation steps
Assess viability and compare the value of rescue with foreclosure
Apply SBB/90/2024 rules on non-accrual, cross-default and restructured loans
Manage debt-to-asset swaps, foreclosed assets and write-off

Built on

Erudite Africa course specification: 1.f Loan Portfolio Management, Training Module: Ethiopian Context (October 2026)
Erudite Africa: Ethiopian regulatory register in the Training Module: Ethiopian Context (October 2026)
NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/95/2025; NBE Risk Management Guidelines (May 2010); NBE MPC meeting No. 7 press release (July 2026)
A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
IFRS 9 Financial Instruments
Movable Property Security Right Proclamation No. 1147/2019; the law on property mortgaged or pledged with banks (reported as Proclamation No. 97/1998)

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.