DEVELOPMENT BANK OF ETHIOPIA

AS-IS BY PROCESS REVISED WORK FLOW CHART OF

CREDIT DELIVERY

Core Business Process Reengineering Team

December, 2006
 1 Introduction

As part of the documentation of the workflow of the credit services, a drawing

describing an activity has been prepared in detail. Various diagrams describing the
purposes of each step of the core processes have been carefully depicting and give a
picture of every movement of activity. Similarly, each of the given type of symbols in
the process map is intended to provide a different meaning to a process or task.

The process map presented in this report shows the AS IS process currently in
use.
The main key activities which are presented in the map include the following processes:

1. Loan Application Stage

2. Providing Information
2 Application Processing
3 2.1 Disclaimer Signing
4 2.2 Due Diligence Preparation
3. First Stage Approval Process
4. Reviewal & Approval by Department Loan committee
4. Covenant Agreement Preparation
5. Release of 30% Equity Contribution
5.1 First Equity Release
5.2 Second Equity Release
6 Second Stage Approval
7 Loan Contract Preparations
8 New Insurance Policy Purchase
9. Loan Disbursement Processes
9.1 First Disbursement
9.2 Second and Subsequent Disbursement
Work process Flow Chart Symbols & Acronym
Key

= Revising /back & forth

= Decision Maker /Top Management

= Supervisors/Decision Maker

= process

= Process Beginning

= Process Termination

= Beginning connector

= Connector to the next page

= Attachment Process
 LOAN DELIVERY PROCESS

Client Checked & Client Guided Explaining about

1st Appearance of Bank's requirement &
guided to to CGAD
the client at DBE providing checklist &
Information Desk office
for loan guidelines
application

Documents Received &

checked & the file
submitted for decision
4

Documents
returned to
client 3
4
Documents Preparing
Documents Documents disclaimer,
No
checked, signed
Collected & Collected & & forwarded prepared signed
sent. sent. &file submitted
5 for subsequent
action.
6 Documents
checked document
Yes & decision made
to continue or not
the process
 7
Document 8 9 10
Document Document Document received
received
Checked & Collected & registered and
registered
forwarded delivered presented
and presented

12 11
13
Document checked discussed
Request with client legal comment, cost Document Checked &
Checked & evaluation and credit forwarded
approved information requested

Legal Comment
No. steps 18
Legal comm..doc

14
15
Collecting & sending Review
to concerned units Message delivered Construction cost.
No. of steps 13
cost.doc
 CI Inf
No. of steps 10
Credit Inf..doc

18
19 17 16
Review comments
Vehicle & travel discuss with client Document Document received
advance request vehicle and travel checked and registered and presented
approved advance requested. forwarded

Fi.vehicle 22
requested 21 Client signed on the
No. of steps 5 Project visited, application form.
20 Req. for f. Due Diligence, pre-
vehicle.doc Credit Risk
Message Assessment,
delivered borrowers detail 22
Req. for Trav. & prepared &
Other advance recommended Document
No. of steps 6 Reviewed, and
Req.for tra.Adv..doc approved.

26
No Go to step
No 22
25

26 24 23
Document Document
Document Document
Reviewed & Collected,
Collected, Yes Received, registered &
registered & approved
No registered & sent
sent presented
documents

29
Go to step
No. 25
No
Document
Reviewed &
approved
Document 27 28 29 30
Received, Document Message
registered & Collected, delivered
presented registered &
sent
 Appraising
process
Yes No. of steps
17
cont..doc

31
32 33 34
Appraisal Appraisal
document Appraisal Appraisal document
report report,
received, Received, registered
directed collected &
registered & presented
forwarded
&presented

38 37 36 35
Appraisal report Appraisal document Appraisal Appraisal report
Reviewed and Received, registered report, collected directed
forwarded & presented & forwarded

39 40 41 42
Appraisal Appraisal Appraisal Credit appraisal
report, collected report, collected report, collected document
& forwarded & forwarded & forwarded approved
 45 44 43
46
Appraisal Credit appraisal Appraisal document Appraisal report
report, collected document Received, registered collected & sent
& forwarded approved & presented

49
47 48 50
Credit appraisal
Appraisal document Credit appraisal Message
document
Received, registered document delivered
received, copied
& presented approved & sent

Loan Approval
No. of steps 39
Appr. by MLC.doc

51 52 53
Final signed Minute
Minute Checked &
minute, received Collected &
forwarded for
registered & sent for
contract preparation
forwarded contract
preparation.

55
56 Covenant agreement 54
Covenant Prepared & forwarded
Covenant agreement Message
for signature
agreement Collected Delivered
No. of steps 18
Checked & registering & Covenant agre..doc
signed. forwarded.

58
 57 59 60
Signed Covenant
agreement Signed Covenant Signed Covenant
Signed Covenant agreement
agreement received, agreement
registered and checked and Collected &
Collected & sent delivered
presented forwarded

62 61
64 63
Signed covenant agreement, Document Document Document
checked, discussed and notify Collected Checked & Collected
client to open current account registered & forwarded registered &
and block equity delivered forwarded

Documents
filed

Blocking of the 30% cash

Cash No of steps 9 BLOCKING 30% eq. cont..doc
Normal ck. No of steps 12 cheque deposit.doc
Special ck. No of steps16 Cheque deposit (ANEX-9C).doc
Opening of C/A No of steps 5 Demand depo..doc
Issuance of ck book No of steps 7 Issu. of check b..doc

65
66 67 68
Submission of Application Application Checked
application for Received Checked& Application
equity release registered & forwarded Collected &
forwarded sent
 72 71 70 69
Application Application Application
Application
Received registered Collected & received, registered
Checked &
& forwarded delivered & forwarded
forwarded

74 77
73 75
Application 76 Covenant agreement
Application File requested File
Collected & referred and equity
Checked & provided
delivered release
forwarded
recommended.

81 80 79 78
Recommendation Document
for equity release Received, Document Recommendation
approved. registered & Collected, reviewed ,accepted
presented registered & sent and forwarded.

83
82
Document Message Releasing of equity
Collected, delivered No. of steps:
registered & By crediting No of steps 15 Disb. to open L.C.doc
sent By L/C CAD No of steps 15 Disb. to open L.C.doc
By CPO No of steps 14 Disb by CPO.doc

86
84 85 87
Application Application
Submission of
Received Checked & Application
application for
registered & forwarded for Collected &
2ndequity release
forwarded. appropriate action delivered
 91 90 89 88

Application Application Application Application

Collected & Collected & Checked & Received
delivered delivered forwarded for registered &
appropriate action forwarded.

92 93 94

Application Application Requested for 95

Checked & Collected & Construction Request signed
forwarded for delivered Evaluation and
appropriate travel advance
action

Process of travel
advance
98 No. of steps 6 96
Req.for tra.Adv..doc 97
Project Visited Message Request
and Information Delivered Collected
Gathered. & sent .
Construction Progress
report
No. of steps 14
Eng. Con.P.doc

99
Progress report
received, 100
registered and
Progress report
forwarded
checked &
forwarded

104
Client informed
to fully utilize
equity
 No 103
101 104
102 Inspection Approved
Report collected, Yes
registered and report report collected
Inspection
forwarded approved and forwarded
report
prepared

107
Go to step
No. 103

No

106 105
108 107 Inspection
report Approved report
Approved
Message approved received,
report collected
delivered and forwarded Yes registered &
presented

Effect payment
No. of steps:
By crediting No of steps 15 Disb. to open L.C.doc
By L/C CAD No of steps 15 Disb. to open L.C.doc
By CPO No of steps 14 Disb by CPO.doc
 109 110 111
Submission of
Application Application
application for
received, registered Checked &
loan processing
& presented forwarded

115 114 113 112

Application Application Application Application

Collected, Checked & received Collected,
registered & forwarded registered & registered &
sent presented sent

116
117 118 119
Application Application Application Requested for
received Checked & Collected, Construction
registered & forwarded for registered & Evaluation and
presented action presented travel advance

120
F & B Dept.; 121
process travel 122 Requested for
advance Approved request Construction
No. of steps 6 Message Collected registered Evaluation and
Req.for Delivered and sent travel advance
tra.Adv..doc approved

123 124 125

Engineering
Dept Progress Progress report Progress report
Project site visited
report received Reviewed &
and Data
No. of steps 14 registered & forwarded
Collected.
Eng. Con.P.doc presented
 129
Go to step
No. 127

No
128 129
126 127
Progress Approved
Follow up report Follow-up Yes report
report with prepared report
Collected & collected &
recommendation reviewed and
delivered delivered
approved

132
Go to step
No. 130
No

133 132 131 130

Follow-up
Approved report Approved
Approved Yes report
report received,
received, report reviewed
registered & and registered &
collected & presented
forwarded approved
delivered

135
Go to step
No. 133

No

134
135 136
Follow-up Yes Finalizing of the
report Approved
Message appraisal with updated
reviewed and report collected
delivered data
approved & delivered
No. of steps 39
Appr. by MLC.doc
 137 138 139 140
Appraisal report
received Appraisal report
Appraisal Appraisal report
registered & received
report reviewed Collected,
presented registered &
& forwarded registered &
delivered presented

144 143 142 141

Appraisal report Appraisal report Appraisal report Appraisal
reviewed & received Collected, report reviewed
forwarded registered & registered & & forwarded
presented delivered

148
145 146 147
Appraisal report
Appraisal report Appraisal report Appraisal report Collected,
Collected, reviewed & approved, signed registered &
registered & owned & forwarded delivered
delivered

152 151 150 149

Appraisal report Appraisal report Appraisal report Appraisal report
received Collected, reviewed & received
registered & registered & forwarded for registered &
presented delivered action presented

153 154 155

Loan committee
Appraisal report Appraisal report
reviewed & Message Approval
Collected, delivered No of steps-39
forwarded for photocopied &
action Appr. by MLC.doc
sent
 156 157 158
Loan committee Instruct for Loan committee 159
minute, Received loan contract minute, Collected, Message
registering & preparation registered & Delivered
forwarded forwarded.
Collecting,

162 161 160

Signed Loan Loan Contract Preparation of
Loan Contract
Contract Received Collected loan contract
Checked and
registered & sent registered & No. of steps 22
signed
forwarded Loan contr.
prepa..doc

Assign Loan Number.

No. steps 3
Loan number.doc
Loan Contract
163 Registered and
Dispatched
Message No. steps 27
Delivered
Signed Loan 164 165
Contract Received Signed Loan
registered & sent Contract Checked
& forwarded

168 167 166

169
Signed Loan Signed Loan Signed Loan
Signed Loan Contract Contract Received
Collected & delivered Contract Contract
Checked & registered & Collected &
forwarded presented delivered
 170 171
Signed Loan File Registered
Contract & referred & placed
discussed with client

172 173 175

174
Submission of Application Application
Application
application for Received Collected, registered
checked and
disbursement registered & & forwarded
Forwarded
presented

178 177 176

179
Application
Application Application Application
Received
Received registered Collected delivered checked and
registered &
& presented Forwarded
presented

180 181 183

182
Application Application File provided
Collected checked and File requested
delivered Forwarded

Informing 186
the Client
No

187 186
185 184
Request for Approved
Disbursement request for Request for Approval for
Yes Disbursement
Received Disbursement Disbursement
registered & Collect & Reviewed and prepared and
presented delivered Approved submitted

189
Go to step
No. 184 No

188 189 190

Yes Request for Request for
Request for
Disbursement Disbursement
Disbursement
Collected & Collected &
Reviewed and
delivered delivered
Approved

191 192 193 194 195

Instruct to Request for Draft RFD RFD, typed RFD, Checked

prepare Disbursement prepared proof read & initialed &
RFD Collected & and forwarded forwarded
delivered submitted

199 198 197 196

RFD Collected RFD Checked, RFD RFD
registered & sent approved & Received Collected &
forwarded registered & delivered
presented

200 Effect disbursement

Message By L/C CAD No of steps 15 Disb. to open L.C.doc
By CPO No of steps 14 Disb by CPO.doc
Delivered By L.P.Authorization- No of steps 18 Disb. by LPA.doc
 201
Application 202 203 204
Submission of Application Application
application for 2nd Received Checked & Collected &
disbursement registered & forwarded delivered.
presented.

208 207 206 205

Application Application Application Application

Received Collected & Checked & Received
registered & delivered. forwarded for action registered &
presented. presented.

209 210 211

212
Application Application Construction Evaluation
Checked & Collected & and Travel Advance Request
forwarded delivered. requested. approved

Preparation of 215 213

Process travel 214
engineering
Progress report advance
Project site Approved
No. of steps 14 No. of steps 6 Message
Visited and request
Eng. Con.P.doc tra.Adv..doc Delivered
Data Gathered Collected &
sent.

217 219
216 218
Construction Progress report
Document Inspection report prepared
Progress reports Referred for
Collected & and submitted
received registered action
delivered
& presented.
 Return to step No. 219
to inform the client
221

No

221
Inspection
Document report prepared 220
Collected & and reviewed
delivered and Approved.
Yes

224 Go to Step No 222

No
223 224
222 225
Request for
Disbursement Disbursemen Document
t Approval Yes Document
Approval Collected
prepared and Reviewed Collected and
and
Submitted and Delivered.
Delivered.
. Approved

227
Go to step No. 225
228 No
229 Document 227 226
Received Document Yes Document
Document referred registered Collected Reviewed and
for RFD preparation and and Approved.
presented. presented.
 230 231 232 233
Document RFD prove read
RFD prepared RFD typed
Collected and initialed and
and submitted
presented. Submitted
234

234
237
236
235
RFD checked RFD received RFD RFD checked
and signed. registered and collected and initialed and
presented delivered. forwarded

239 238 Effect disbursement

By L/C CAD No of steps 15 Disb. to open L.C.doc
Message RFD collected By CPO No of steps 14 Disb by CPO.doc
Delivered and sent. By L.P.Authorization- No of steps 18 Disb. by LPA.doc