Ethiopia Allows State Enterprises to Write Off Decade-Old Receivables

The Ethiopian Ministry of Finance has issued Directive No. 1151/2026, creating a legal framework for state-owned enterprises to clean up their balance sheets. The new regulation provides a three-year grace period for these entities to write off receivables, unpaid payables, and obsolete assets that have been on their books for over a decade. This move is designed to address longstanding financial inefficiencies within state-owned corporations. By allowing the removal of unrecoverable debts and stagnant assets, the ministry aims to provide a clearer financial picture for these enterprises. The regulation establishes a one-time mechanism for holding companies and supervisory authorities to implement these financial adjustments.