The policy bank, Development Bank of Ethiopia, disclosed that it recovers four billion Birr loans from defaulters in the past five months. This is a big improvement for the Bank that was not able to collect more than ETB18 billion loans it provided to different investors until the end of last fiscal year.
Although five billion Birr still not recovered from defaulters and this is already reported as a loss loan in the Bank’s last fiscal year report, different administration measures have been taken to reduce non-performing loans.This has also helped the Bank rebounds from losses, registering ETB213.77 million in profit in the first-quarter of the current financial year.
It is a quick recovery for the Bank registered a loss of ETB768.8million the past fiscal year.The growth in profit is justified by the Bank’s management action on projects that have underperformed and were unable to repay their loans as well as the structuring of the Bank’s loan procedures.
In doing so, the Bank managed to reduce its non-performing loans to 33Pct from being as high as 38Pct as of June 30, 2019. In the first quarter of the current financial year, the Bank disbursed almost two billion Birr in loans.