President Joseph Nyuma Boakai has called for urgent, and coordinated action to address the growing non-performing loan problem.
Boakai warned that unresolved bad loans could undermine access to finance, private-sector growth, and job creation.
He made the call on Wednesday, September 9, when he officially opened the national conference on the Resolution of Non-Performing Loans.
The ceremony was hosted at the EJS Ministerial Complex in Congo Town, outside Monrovia.
Boakai commended the Central Bank of Liberia (CBL) for convening the conference. He described non-performing loans as a “serious economic issue with consequences extending beyond commercial banks to development.”
He said, the problem should not be viewed only through technical banking terms, such as distressed assets, collateral, credit risks, and insolvency.
He stressed the need for ordinary citizens to directly feel its impact.
Boakai: “Non-performing loans affect farmers seeking for money to increase production, young entrepreneurs looking for capital, businesses seeking 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 tied up, forcing banks to become more cautious while making credit more difficult, and expensive for businesses, and individuals.
Boakai said, the conference’s theme: “Resolving Non-Performing Loans to Unlock Access to Finance for Private Sector Growth, and Job Creation,” is timely, and closely linked to his Administration’s ARREST Agenda for Inclusive Development.
