Overview

The growing incidence of problems and non-performing loans in financial institutions is one of the major challenges that have continued to confront financial institutions, thereby limiting their ability to lend to micro, small, and medium-sized enterprises (MSMEs). This situation has been exacerbated by disruptions in the economic environment, including macroeconomic difficulties such as rising inflation and foreign exchange fluctuations, as well as increasing risks associated with climate change, among others. In the context of these challenges, financial institutions are expected to comply with regulatory requirements concerning NPL. Both problem loans and NPLs are crucial for financial institutions asset quality and stability.

These dynamics require that financial institutions, including Development Finance Institutions, scale up their operational capacity to address problem loans and also acquire current strategies to manage NPLs to acceptable industry levels.

The objective of the workshop is to strengthen the capacity of participants to manage problem loans and non-performing loans effectively. Their skills in identifying the root causes of problem loans and NPLs will be sharpened to enable early identification and management of problem loans before they become non-performing. And to deal with NPLs to maximize recovery and nurture redeemable NPLs to good health.

Furthermore, by the end of the course, the participants would be equipped to:

• Carry out a systematic assessment of clients’ loans for control purposes,
• Propose options to management on how to manage and recovery of NPLs,
• Administer properties acquired in the settlement of default,
• Provide enlightened leadership in planning and implementing payment arrears recovery.
• Develop workable strategies to rescue problem loans.
• Ensure their institution focuses on robust risk management practices to minimize NPLs.
• Ensure their institutions are  in alignment with their countries regulatory requirement for NPL management.