Liberia: Boakai Puts Banks, Borrowers and Government on Notice As NPLs Hit 19%, Demands Urgent Fix

Monrovia — President Joseph Boakai has called for urgent and coordinated action to resolve Liberia’s persistent non-performing loan (NPL) problem, warning that the crisis is restricting access to credit and threatening the country’s broader economic growth. Jaheim T. Tumu-jaheim. tumu@frontpageafricaonline. com Speaking Wednesday, September 9, at the opening of the National Conference on the Resolution of Non-Performing Loans at the Ministerial Complex in Monrovia, President Boakai said the issue must no longer be treated as merely a technical banking concern, but as a national development challenge. The three-day conference, convened by the Central Bank of Liberia, is being held under the theme, “Resolving Non-Performing Loans to Unlock Access to Finance for Private Sector Growth and Job Creation.

” The gathering brings together government officials, commercial banks, regulators, the judiciary, the Legislature, private sector representatives and development partners to examine the causes of distressed loans and develop measures to improve credit recovery and expand access to financing. President Boakai said the consequences of unpaid loans extend far beyond bank balance sheets. “This issue, in my view, is really about people,” the President said, pointing to farmers seeking financing to expand production, young entrepreneurs looking for capital, businesses hoping to expand and create jobs, and depositors whose funds must be protected. He warned that when loans remain unpaid, money that should circulate through the economy becomes trapped, forcing banks to become more cautious and making credit harder and more expensive for legitimate borrowers. “That is why the theme of this conference … is both timely and important,” Boakai said. “This is not simply a banking problem.…