Determinants of Loan Repayment Performance of Industrial Projects

Once the loan is extended to establishment of projects, getting back the money is challenging. To address this research gap, the study aimed at investigating factors affecting loan repayment performance of industrial projects financed by Development Bank of Ethiopia. As a result, mechanisms that could improve loan repayment performance consists of organizing regular discussion mechanism, recruit expatriates for high-tech projects, comprehensive due diligence assessment on educational level and work experience of existing management staffs , design sound and appropriate marking strategy, improve appraisal planning quality, protect strategic default through reasonable collateral coverage ratio, and properly determine the loan size of the project.