MONROVIA – Liberia’s effort to resolve nonperforming loans has moved from diagnosis toward a coordinated national response involving government, banks, courts and borrowers. President Joseph Nyuma Boakai and officials used the National Non-Performing Loans Resolution Conference to frame distressed credit as an economic-development emergency. Banks cannot sustainably finance farmers, entrepreneurs and job-creating businesses while large volumes of existing loans remain unpaid. Yet lenders also require stronger credit information, enforceable contracts and responsible government payment practices. The proposed national task force, communiqué, action plan and implementation roadmap provide a structure for reform. Their value will depend on deadlines, assigned responsibilities and measurable outcomes. Liberia must now convert institutional consensus into restored credit, improved repayment and wider economic opportunity, as THE ANALYST reports.
MONROVIA: Liberia has reached a broad national consensus that resolving the country’s nonperforming loans (NPLs) is a national development priority requiring coordinated action. The proposed response will involve the government, Central Bank of Liberia (CBL), financial institutions, Legislature, Judiciary, borrowers, lenders and development partners.
The consensus emerged at the conclusion of the National Non-Performing Loans Resolution Conference. The gathering brought together senior government officials, financial-sector stakeholders, development partners, legal practitioners, private-sector representatives and other actors to examine the causes of NPLs and develop practical solutions.
The conference focused on restoring lending, strengthening financial-sector stability and expanding access to finance. It was held under the theme, “Resolving Non-Performing Loans to Unlock Access to Finance for Private Sector Growth and Job Creation.”
Participants highlighted the urgent need for coordinated reforms to improve credit discipline, strengthen financial infrastructure and enhance debt-recovery mechanisms. They also called for a more enabling environment for private-sector development.
Boakai Demands Concrete Implementation
President Joseph Nyuma Boakai placed the NPL challenge within the government’s broader national development program, the ARREST Agenda for Inclusive Development (AAID). He emphasized that the problem ultimately concerned Liberian farmers, entrepreneurs and businesses that need financing to expand their operations, create jobs and contribute to inclusive economic growth.
Boakai acknowledged that too many loans remained unpaid and called for responsible conduct from both sides of the credit relationship. He stressed that banks must lend responsibly, borrowers must honor their obligations, contracts must be respected and the government must support reforms that strengthen the credit system.
The President called for stronger credit-reporting systems, collateral registries and insolvency frameworks. He also urged stakeholders to move beyond diagnosing the problems and begin implementing solutions.
“We have had many conferences and good reports. This Conference must implement the outcomes,” Boakai emphasized. He called for realistic timelines to address the identified problems and urged stakeholders to remain focused on tangible results.
Koung Announces National Task Force
Vice President Jeremiah Kpan Koung noted that the conference had generated broad consensus around the causes of NPLs and the reforms required to address them. He highlighted a central conclusion from the gathering: Resolving NPLs is linked to the broader performance of the Liberian economy.
Koung acknowledged the existence of legal and judicial bottlenecks. He maintained, however, that the conference demonstrated that Liberia possesses the expertise required to address the problem.
“What remains is implementation,” Koung stated. He emphasized that no country could achieve broad-based prosperity without adequate access to finance for businesses.
The Vice President noted that the government viewed the conference as an important building block in rebuilding and strengthening the Liberian economy. He pledged the government’s support for reforms that promote credit discipline, responsible lending and effective implementation.
Koung further emphasized the importance of establishing a coordinated implementation mechanism. On behalf of the President, he announced the formation of a National Non-Performing Loan Resolution Task Force.
The task force will bring together the Ministry of Finance and Development Planning (MFDP), Ministry of Justice, financial institutions and other relevant stakeholders. It will be responsible for developing a coordinated framework, establishing timelines, monitoring progress and reporting on implementation.
Koung stressed that responsibility for implementation rested with every relevant government institution, the Legislature, Judiciary, financial institutions and borrowers. He called for cooperation among all parties involved in the country’s credit system.
Saamoi Seeks Lending And Jobs
Executive Governor of the Central Bank of Liberia Henry F. Saamoi emphasized that the participation of stakeholders demonstrated a shared commitment to confronting one of the major constraints to private-sector development. He pointed to the effect of distressed loans on credit availability for businesses and entrepreneurs.
Saamoi disclosed that the ratio of nonperforming loans declined from 19.1 percent in 2024 to 12.9 percent in 2025. He noted, however, that the decline had not translated into sufficient recovery.
The CBL executive governor underscored the importance of resolving NPLs to unlock additional lending to farmers, businesses and entrepreneurs seeking financing to expand their operations. He linked successful loan resolution directly to growth, investment and employment.
“Resolving NPLs is not a banking issue alone. It is a development objective that supports growth, investment, and job creation,” Saamoi stated.
He stressed that the conference should be judged by the implementation of tangible reforms and outcomes rather than the quality of its discussions. Saamoi consequently called for three concrete deliverables from the conference.
The deliverables include a National NPL Resolution Communiqué and a time-bound action plan. They also include an implementation roadmap with clearly assigned institutional responsibilities, milestones, monitoring arrangements and reporting mechanisms.
“The true measure of success will not be what we say at this Conference, but whether more Liberians gain access to credit, whether repayment improves, and whether businesses can grow and create jobs,” Saamoi emphasized. He maintained that these outcomes would provide the proper measurement of the conference’s success.
Ngafuan Connects Loans To Employment
Minister of Finance and Development Planning Augustine Kpehe Ngafuan reinforced the development dimension of the NPL challenge. He stressed that nonperforming loans ultimately affect whether farmers and businesses can obtain financing, expand their operations and create employment.
“NPLs are not about banks. They are about jobs,” Ngafuan stated. He acknowledged that although the NPL ratio had declined, the absolute stock of nonperforming loans remained alarming.
Ngafuan explained that those distressed loans represented financial resources that could otherwise be deployed for productive economic activity. He also highlighted the relationship between the government’s fiscal obligations and the health of the private and banking sectors.
The minister noted that when the government fails to pay contractors on time, the affected contractors may be unable to service loans obtained from financial institutions. He acknowledged the government’s responsibility to lead by example.
Ngafuan observed that the government had, at times, been among the largest sources of payment arrears. He stated that the government was working to restore credibility with vendors and partners and pledged that it would honor its obligations.
The minister pledged the full support of the Ministry of Finance and Development Planning in implementing the conference’s outcomes. He committed the ministry to working with the CBL, Legislature and Judiciary on the proposed reforms.
World Bank Urges Collective Action
World Bank Country Manager Georgia Wallen described the conference as an opportunity for collective action to support prosperity and businesses across Liberia. She emphasized that resolving NPLs went beyond maintaining financial-sector stability.
Wallen explained that high levels of distressed loans reduced the capacity of banks to extend new credit to productive businesses. She identified four broad priorities emerging from the conference’s discussions.
The priorities include building trust in the financial system and addressing the responsibilities of borrowers and lenders. They also call for the early recognition of distressed loans and their efficient resolution so that capital can return to productive use.
The World Bank expressed its readiness to continue supporting Liberia’s efforts to translate those priorities into practical reforms. Wallen’s remarks emphasized the importance of returning distressed capital to activities that support business growth.
Embassy Stresses Investor Confidence
Representing the United States Embassy, Chargé d’Affaires Joseph Zadrozny shared lessons from the United States’ experience in addressing financial distress. He emphasized the importance of early recognition, resolution and returning capital to productive economic use.
Zadrozny stressed that borrowers needed confidence that financial rules were fair, transparent and consistently applied. He also observed that lenders needed reliable information to assess credit risks.
He noted that unresolved debt on a borrower’s record could affect the person’s access to subsequent financing. He therefore linked NPL resolution directly to the expansion of access to finance.
Zadrozny identified stronger credit information, a national identification system and improved credit-reference infrastructure among the critical reforms. He also emphasized the importance of enforceable contracts and investor confidence.
According to the chargé d’affaires, investors want assurances that contracts will be respected. They also need confidence that financial institutions have the capacity to provide credit.
Tweh Links Loans To Law
Minister of Justice and Attorney General Oswald Tweh stressed that NPLs had the potential to cripple economic activity. He cautioned against viewing them solely as a banking problem.
“NPL is not only a bank issue; it is a rule-of-law issue, requiring efficient legal and judicial processes, stronger enforcement mechanisms, and greater confidence in contractual obligation,” Tweh stated.
He committed the Ministry of Justice to examining the legal framework governing debt recovery, contracts and enforcement. The review would cover both the laws on the books and their practical application.
Tweh also pointed to the constitutional protection of contracts. He referenced the range of legal remedies available to creditors seeking to recover debts.
Koon Promises Legislative Support
Speaker of the House of Representatives Richard Nagbe Koon expressed the Legislature’s strong support for the conference. He emphasized that nonperforming loans constituted a national development challenge.
Koon noted that bad loans represented capital that could not be recovered and redeployed into productive economic activities. He also warned that persistent NPLs could pose risks to financial-sector stability.
The Speaker pledged legislative support for strengthening the legal framework governing insolvency, collateral enforcement and debt recovery. He stated that the Legislature stood ready to work with the CBL, Senate, Judiciary and other stakeholders.
Koon said the proposed cooperation should help create a financial system that expands access to finance. He emphasized the financing needs of small businesses, women entrepreneurs and other underserved groups.
The Speaker further maintained that the conference’s success should ultimately be measured by implementation and increased financing for businesses. He cautioned against allowing the process to result merely in the production of another report.
Senate Backs Necessary Legal Reforms
Senate President Pro Tempore Nyonblee Karnga-Lawrence was represented by Senate Committee on Banking and Currency Chairman Cllr. Joseph K. Jallah. Jallah reaffirmed the Liberian Senate’s commitment to supporting reforms necessary to strengthen the country’s credit environment and accelerate the resolution of nonperforming loans.
Jallah emphasized that sustainable economic growth required a legal and policy framework that promoted responsible borrowing and responsible lending. He also called for efficient debt recovery and greater investor confidence.
The committee chairman pledged Senate support for reforms aimed at strengthening insolvency procedures, collateral enforcement and access to finance. He stressed the importance of continued collaboration among the Legislature, Executive, Judiciary, Central Bank and private sector.
Institutions Commit To National Action
The conference demonstrated a convergence of views among the Executive, Legislature, legal practitioners, central banks, financial institutions, private-sector actors and development partners. Participants agreed that NPL resolution must be treated as a national economic priority.
They determined that restoring access to finance would require stronger national credit discipline and improved credit infrastructure. The process will also require enhanced debt-recovery mechanisms, modernized regulatory and supervisory frameworks, and expanded financing opportunities for productive sectors of the economy.
The conference’s outcomes will be consolidated into a National NPL Resolution Communiqué, an action plan and an implementation roadmap. The documents will include assigned responsibilities, timelines, monitoring arrangements and reporting mechanisms.
The Central Bank of Liberia will collaborate with the government and all relevant stakeholders to maintain the momentum generated by the conference. The parties intend to translate that momentum into measurable improvements in lending, repayment performance and financial-sector stability.
They also seek to produce measurable gains in private-sector development and job creation. Those outcomes will determine whether the national commitments made during the conference produce meaningful economic results.
As Boakai reminded participants, the challenge was no longer identifying the problem. The challenge was implementing the proposed solutions.
Liberia’s success will ultimately be measured by whether farmers obtain financing to expand production and entrepreneurs secure capital to grow businesses. It will also depend on whether borrowers repay responsibly and increased credit contributes to stronger economic growth and employment opportunities for Liberians.
The national consensus emerging from the conference was that Liberia could not unlock broad-based prosperity without expanding access to finance. Participants also agreed that expanded access to finance would require the country to resolve its nonperforming loans.
CBL Recognizes Conference Participants
The Central Bank of Liberia extended appreciation to all participants whose insights and commitments contributed to the National Non-Performing Loans Resolution Conference. The Bank particularly acknowledged the contributions of delegates from sister central banks in the region.
According to the CBL, their perspectives and experiences provided important comparative lessons and reinforced the spirit of regional cooperation. Their participation also underscored the common challenges and opportunities confronting financial systems across Africa.
The CBL expressed its readiness for continued collaboration in advancing credit discipline, financial stability and inclusive growth. It maintained that the conference’s commitments must now be translated into an effective national response.
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