MORE THAN A BANKING PROBLEM”: CBL GOVERNOR HENRY SAAMOI DECLARES FIGHT AGAINST NON-PERFORMING LOANS A NATIONAL PRIORITY TO PROTECT BUSINESSES, HOUSEHOLDS AND LIBERIA’S ECONOMIC FUTURE
By: Rufus Divine Brooks Jr.
MONROVIA — Central Bank of Liberia Governor Henry F. Saamoi has warned that Liberia’s rising Non-Performing Loans are undermining economic growth, urging banks, borrowers, the judiciary, regulators and the media to work together to address what he called “a national development imperative.”
Speaking Wednesday at a one-day media orientation ahead of the National Non-Performing Loans Resolution Conference, Governor Saamoi said the country’s NPL ratio of 12.62% is threatening financial stability and banks’ ability to lend to businesses and households.
“Across the world, a healthy banking system serves as the engine of economic development by mobilizing savings and channeling credit to productive sectors,” Governor Saamoi stated.
“However, when a significant portion of loans are not repaid according to agreed terms, financial institutions become more cautious in extending new credit, businesses face financing constraints, investors lose confidence, and economic expansion slows.”
Beyond Banking: A National Problem:
The CBL Governor emphasized that bad loans extend beyond the banking sector and directly impact livelihoods.
“The issue of non-performing loans affects more than banks, it affects entrepreneurs seeking capital to expand, farmers seeking finance to improve productivity, young people pursuing opportunities, women-owned enterprises striving to grow, and communities seeking jobs and prosperity,” he said.
“Therefore, addressing the NPL challenge is not only a banking-sector priority; it is a national development imperative.”
The upcoming National NPL Conference will convene policymakers, commercial banks, members of the judiciary, legal professionals, legislators, development partners and business leaders to find sustainable solutions to loan recovery, collateral enforcement, and credit discipline.
Governor Saamoi outlined 6 objectives and 8 pillars, the CBL will pursue to address the structural drivers of bad loans.
A key focus will be modernizing credit infrastructure, including the Enhanced Collateral Registry System to improve access to finance for SMEs.
“By strengthening the legal and operational framework for secured transactions, we can improve lenders’ confidence and broaden financing opportunities for businesses and households,” he noted.
The CBL’s goal, he added, is to build a stronger credit culture that promotes access to financing while safeguarding financial stability.
Governor Saamoi said the media has a critical role in translating technical financial issues for the public.
“Discussions and outcomes emerging from the conference will involve technical concepts that influence the lives of ordinary Liberians,” he said.
“I encourage the media to help bridge the gap between technical policy discussions and public understanding through accurate, balanced, and insightful reporting.”
Also speaking, CBL Head of Corporate Communications Cllr. P. Alphonsus Zeon said high NPL levels limit lending, slow investment, and weaken confidence in the financial system.
He urged journalists to help educate the public on responsible borrowing and timely loan repayment.
The media orientation was convened to ensure informed coverage of financial stability, credit risk, and banking sector performance ahead of the national conference.