CBL Targets Bad Loans to Expand Access to Credit

MONROVIA, Liberia, September 10, 2026 — The Central Bank of Liberia (CBL) has opened a three-day national conference aimed at tackling the country’s high level of non-performing loans and developing reforms to expand access to credit for businesses and stimulate private-sector growth.

CBL Executive Governor Henry F. Saamoi said Wednesday that resolving non-performing loans (NPLs) is critical to strengthening Liberia’s banking system and supporting the country’s broader economic transformation.

The National Non-Performing Loans Resolution Conference, being held at the Ellen Johnson Sirleaf Ministerial Complex, brings together representatives of government, the judiciary, commercial banks, development partners and international experts from Nigeria, Ghana, Egypt, Kenya and the United States.

It is being held under the theme, “Promoting Access to Finance to Support Private Sector Growth and Job Creation.”

Saamoi said high levels of bad loans continue to constrain banks’ ability to extend credit at a time when entrepreneurs, farmers, manufacturers, women and young people need financing to establish and expand businesses.

According to the governor, Liberia’s banking sector recorded an NPL ratio of 19.1% at the end of 2024, nearly double the prudential benchmark.

The ratio declined to 12.9% in 2025, but Saamoi said much of the improvement resulted from loan restructuring and write-offs rather than sustainable recovery of distressed loans.

He cited regional figures showing Ghana with an NPL ratio of 21.8% in 2024, Nigeria at 8.1%, Guinea at 6.7% and The Gambia at 4.6%.

Saamoi said healthy banking systems generally seek to maintain NPL ratios at 5% or below.

“No nation has successfully resolved a systemic NPL challenge through isolated action. Success requires partnership, coordination and commitment,” he said.

“Governments must play their part. Regulators must play their part. Banks must play their part. The judiciary must play its part. Borrowers must play their part, and development partners must play their part.”

During the three-day conference, participants are expected to assess the scale and causes of non-performing loans in Liberia and review the regulatory, legal and judicial frameworks governing their prevention and resolution.

Discussions will also focus on strengthening credit-risk management, debt recovery and collateral enforcement, while drawing lessons from regional and international experiences.

The conference is expected to produce a national NPL resolution roadmap outlining responsibilities, timelines and commitments for implementing reforms.

Other expected outcomes include a conference communiqué and reform action plan aimed at reducing bad loans, modernizing Liberia’s credit infrastructure and improving access to finance.

Saamoi said the initiative is consistent with the government’s broader objectives of promoting private-sector development, modernizing the financial sector, diversifying the economy and creating jobs.

He said reducing the NPL ratio alone would not be enough to determine whether the reforms are succeeding.

“The ultimate measure of success of this conference will not simply be by lower NPL ratios,” Saamoi said. “Success will be reflected in greater access to credit, better repayment terms and performance, stronger businesses, expanded investment, increased employment opportunities and improved livelihoods for our people.”

The governor thanked the World Bank Group, International Monetary Fund, African Development Bank, African Export-Import Bank, U.S. Embassy, European Union, judiciary, Legislature and the Liberia Investment, Finance and Trade Project for supporting efforts to strengthen the financial sector.

Saamoi called for the conference to mark a turning point in Liberia’s financial-sector development, with stronger banks, healthier balance sheets and greater access to financing.

“Resolving non-performing loans is not only a banking sector objective; it is a national development imperative,” he said. “It is about creating jobs, expanding opportunities, and building a more prosperous and inclusive Liberia.”