By By: Staff Writer
The Central Bank of Liberia says rising bad loans are slowing economic growth and making it harder for businesses and ordinary people to get credit.
CBL Executive Governor Henry Saamoi gave the warning on Wednesday during a media briefing ahead of the National Non-Performing Loans Conference. He said the problem is not limited to banks. It is affecting farmers, small businesses, women-owned companies, and young Liberians trying to borrow money to grow.
Governor Saamoi explained that when many loans go unpaid, banks become more careful about lending. That leaves businesses short of capital, reduces investor confidence, and slows the overall economy. He described the NPL issue as a national development challenge that needs urgent action.
To address it, the Central Bank will host a three-day conference from September 9 to 11, 2026. Policymakers, commercial banks, judges, lawyers, lawmakers, development partners and business leaders are expected to attend. The goal is to find practical solutions around loan recovery, enforcing collateral, credit discipline, and responsible lending.
One of the main reforms the CBL is pushing is modernizing Liberia’s credit infrastructure. Governor Saamoi highlighted the Enhanced Collateral Registry System as a key tool to help lenders feel more secure and to expand access to finance, especially for small and medium-sized businesses.
He also called for closer work between the financial and legal sectors so that loan disputes can be settled quickly through clear and predictable rules.
The Governor urged the media to help break down the complex issues for the public. He said clear reporting can improve financial literacy and build a stronger culture of borrowing and repayment.
According to the CBL, building a resilient and inclusive financial system is critical for Liberia’s long-term prosperity. The September conference will focus on creating a stronger credit culture that expands access to loans while protecting the stability of the banking sector.
