Koung: “what Remains Is Implementation” As Boakai Administration Moves Against Bad Loans

Monrovia – The Government of Liberia is moving to confront the country’s persistent non-performing loans problem through the establishment of a National Non-Performing Loans Task Force, signaling a shift from policy discussions toward a coordinated national response to weaknesses affecting the financial sector.

Vice President Jeremiah Kpan Koung announced the formation of the Task Force Friday in Monrovia while delivering the closing remarks at the National Conference on the Resolution of Non-Performing Loans in the Liberian Financial Sector.

The initiative, according to Vice President Koung, comes on the directive of President Joseph Nyuma Boakai and is intended to bring together key institutions and stakeholders under one coordinated framework to address both existing bad loans and the conditions that allow new non-performing loans to accumulate.

The Task Force will bring together the Central Bank of Liberia, the Ministry of Finance and Development Planning, the Ministry of Justice, financial institutions, relevant government agencies, development partners, technical experts and other stakeholders with responsibilities connected to Liberia’s financial system.

Vice President Koung said the President has directed the relevant institutions to move quickly to finalize the composition of the Task Force, its terms of reference and an implementation action plan.

He said the action plan must clearly identify responsibilities, establish timelines and provide mechanisms for monitoring and reporting progress, making implementation a central component of the new national approach.

The Vice President said President Boakai expects the Task Force to move beyond conference recommendations and discussions and begin producing concrete results, particularly in addressing legacy non-performing loans while strengthening systems to prevent the accumulation of new bad loans.

That approach places the issue of non-performing loans within a wider economic reform agenda rather than treating it solely as a banking-sector problem.

Vice President Koung said the consequences of non-performing loans extend beyond commercial bank balance sheets because elevated levels of bad loans can constrain lending, increase the cost of credit, restrict private-sector expansion and weaken economic growth.

“Resolving non-performing loans is not simply about improving commercial bank balance sheets; it is about unlocking economic opportunity, expanding access to finance, encouraging investment, supporting entrepreneurship, and creating jobs for the Liberian people,” he said.

The Vice President said the conference identified several structural weaknesses contributing to the problem, including deficiencies in credit infrastructure, legal and judicial bottlenecks, governance challenges, weaknesses in enforcement mechanisms and wider economic conditions.

The formation of the Task Force therefore represents an attempt to bring these interconnected issues under a single coordinated reform process.

Koung said Liberia already has the expertise and institutional capacity necessary to begin addressing the challenge.

“The policy options have been identified. The reform priorities have been articulated. The responsibilities of stakeholders have been clarified. What remains is implementation,” he emphasized.

The statement puts pressure on the institutions involved to demonstrate measurable progress after the conference, particularly because the government has acknowledged that recommendations alone will not resolve the country’s credit challenges.

Under the proposed framework, government agencies are expected to strengthen policies and coordination, while the Legislature will have a role in supporting legal reforms required to improve the financial system.

The Judiciary is also expected to contribute by strengthening contract enforcement and commercial justice, areas identified during the conference as part of the difficulties affecting debt recovery and the resolution of commercial disputes.

Financial institutions, meanwhile, are expected to improve governance, underwriting standards and risk-management practices.

Borrowers will also have responsibilities under the reform agenda, with Vice President Koung stressing the importance of honoring financial obligations and building a stronger culture of repayment and accountability.

The government also wants reforms to improve debt recovery, insolvency administration, collateral enforcement and commercial dispute resolution while ensuring fairness, transparency and consumer protection.

Koung said these reforms are important because Liberia cannot achieve sustainable economic transformation without a financial system capable of providing affordable and sustainable financing to individuals and businesses.

He placed particular emphasis on micro, small and medium-sized enterprises, women-owned businesses, young entrepreneurs, agricultural value chains and underserved communities that often face greater difficulty obtaining financing.

The Vice President said strengthening the country’s credit infrastructure and improving prudential supervision and credit-risk management must therefore form part of the response.

He linked the effort directly to the Boakai administration’s ARREST Agenda for Inclusive Development, arguing that the objectives of the national development program require a financial sector capable of supporting productive economic activity.

The government is also seeking continued participation from development partners, which Koung said can provide technical expertise and financial support as reforms move forward.

But the Vice President made clear that responsibility for resolving the problem cannot rest with a single institution.

He said government agencies, lawmakers, the Judiciary, commercial banks, borrowers, development partners and the private sector must all contribute to the process.

For the Boakai administration, the test now shifts from what was said during the conference to what happens after it.

Koung warned stakeholders against allowing the conference’s recommendations to remain on paper.

“History will not judge this conference by the quality of the presentations delivered in this hall. History will judge it by the reforms implemented after we leave,” he said.

He said the success of the initiative should be measured through practical outcomes, including the resolution of existing bad loans, increased availability of credit to productive sectors, business expansion, job creation and restored confidence in Liberia’s financial system.

Koung reaffirmed the administration’s commitment to working with the Central Bank of Liberia, Legislature, Judiciary, financial institutions, development partners and the private sector to maintain momentum beyond the conference.

“Our commitment is to implementation of the outcome, the recommendations and the commitments from all stakeholders. Our commitment is to reform. And our commitment is to delivering tangible benefits for the Liberian people,” he said.

The Vice President concluded by calling on stakeholders to move with determination, stressing that Liberia must now pursue action rather than allow the conference’s recommendations to remain aspirations.

He thanked the Central Bank of Liberia, the Ministries of Finance and Development Planning and Commerce and Industry, development partners, panelists, technical experts and participants for their contributions to the conference.