Development Bank working to recover 8.6 bln birr non-performing loan

Addis Ababa, January 12, 2018 (FBC) – The Development Bank of Ethiopia (DBE) said it is working to recover 8.6 billion birr non-performing loan (NPL).

Of the total amount of loan it provided, the non-performing loan accounted 25.3 percent, which is more than the requirements set by the National Bank of Ethiopia (NBE).

According to NBE, the non-performing loan should not exceed from 15 percent of the total loan the bank has provided.

Data from the bank shows that out of the 5.6 billion birr loan it has provided for state farms, 3.6 billion is a non performing loan.

Kifle Haileyesus, DBE’s strategic, change and communication director, said the bank is working by setting up a task force to recover and reduce the amount of loan.

He said quitting provision of loan for new projects, encouraging existing clients to improve productivity and extending the date for the scheduled payment of loan are some of the methods the bank will employ to recover the non-performing loan.

Translated and posted by Amare Asrat