Credit and Debt Management

Course Overview:

Effective credit and debt management is essential for individuals, financial institutions, governments, and businesses to ensure long-term financial stability and sustainability. This course provides a comprehensive understanding of the key principles, policies, and practices related to both credit extension (lending) and debt servicing (borrowing and repayment).

Participants will learn how to manage credit portfolios, evaluate creditworthiness, monitor debt levels, and apply risk mitigation strategies. The training also focuses on public and corporate debt management, covering borrowing strategies, debt sustainability analysis, and legal frameworks governing debt obligations.

The course blends theory with practical case studies, simulations, and tools applicable to banks, MFIs, corporations, governments, and NGOs.

 

Course Objectives:

By the end of this course, participants will be able to:

• Understand the fundamental concepts of credit and debt management
• Assess credit risk and borrower creditworthiness
• Manage credit portfolios and control delinquency
• Develop and implement debt management strategies
• Monitor debt sustainability and financial exposure
• Apply tools and techniques for debt restructuring and recovery
• Ensure compliance with regulatory and legal frameworks

 

Target Audience:

• Credit Officers / Analysts
• Debt Managers / Treasury Officers
• Financial Controllers / Accountants
• Risk and Compliance Officers
• Public Sector Debt Management Units (DMUs)
• MFIs, Banks, Cooperatives, and Development Organizations
• Project and Program Managers overseeing borrowing or lending operations

 

Course Duration:

4 Weeks (customizable)

 

Training Methodology:

• Expert-led interactive lectures
• Case studies and practical simulations
• Group discussions and problem-solving sessions
• Templates, dashboards, and real-world tools
• Pre- and post-assessments (optional)

 

COURSE CONTENT

Module 1: Introduction to Credit and Debt Management

• Definition and key concepts
• Importance in personal, corporate, and public finance
• Scope: credit extension vs. debt servicing

Module 2: Principles of Sound Credit Management

• The credit lifecycle
• Lending policies and governance
• Types of credit: consumer, business, asset-based, government

Module 3: Credit Risk Assessment and Underwriting

• The 5 Cs of credit
• Credit scoring models and techniques
• Appraisal tools and documentation

Module 4: Loan Structuring and Documentation

• Structuring repayments, interest, and securities
• Loan agreements and collateral management
• Regulatory compliance in documentation

Module 5: Credit Portfolio Management

• Portfolio analysis and credit mix
• Risk-adjusted return on capital (RAROC)
• Concentration and sectoral exposure management

Module 6: Monitoring and Controlling Credit Exposure

• Early warning signals of default
• Risk monitoring dashboards
• Credit limit tracking and alert systems

Module 7: Delinquency and Default Management

• Causes and impact of loan defaults
• Collection strategies and workout options
• Aging schedules and provisioning

Module 8: Debt Recovery and Restructuring

• Negotiation strategies with borrowers
• Restructuring and rescheduling options
• Legal recovery mechanisms and insolvency

Module 9: Fundamentals of Debt Management

• Debt instruments: loans, bonds, notes
• Types of borrowers: corporate, sovereign, individual
• Strategic vs. operational debt

Module 10: Public Debt Management Framework

• Role of Debt Management Offices (DMOs)
• Debt policy, transparency, and accountability
• Managing domestic vs. external debt

Module 11: Debt Sustainability Analysis (DSA)

• Debt-to-GDP and other key ratios
• Indicators of debt distress
• Tools from the IMF/World Bank DSA framework

Module 12: Treasury and Cash Flow Planning

• Role of treasury in managing borrowing and repayment
• Cash flow forecasting for debt servicing
• Liquidity management

Module 13: Debt Instruments and Markets

• Bonds, treasury bills, commercial papers
• Credit rating and market pricing
• Primary vs. secondary debt markets

Module 14: Legal and Regulatory Aspects

• Contractual obligations and covenants
• Insolvency and debt recovery laws
• Consumer protection and fair lending

Module 15: Reporting, Disclosure, and Compliance

• Credit and debt reporting requirements
• Portfolio performance reports
• Regulatory filings and audits

Module 16: Case Studies and Group Exercises

• Real-life credit and debt management challenges
• Public debt crises and corporate defaults
• Simulation: credit appraisal, portfolio restructuring, DSA
• Group presentations and peer feedback

 

Training Deliverables

• Participant Manual / Workbook
• PowerPoint Slides per Module
• Credit/Debt Policy Templates
• Sample Loan Appraisal Forms
• Debt Sustainability & Cash Flow Tools (Excel)
• Regulatory Compliance Checklists
• Certificate of Completion

 

Optional Add-ons:

• Custom training proposal (for donor or institutional submission)
• Editable materials (Word, Excel, PPT formats)
• Sector-specific versions (e.g. Government, Banks, NGOs, MFIs)
• Trainer’s Manual with facilitation tips