Liberia: U.S.$100m Locked in Bad Loans As Boakai Demands Urgent Action

What the report says

Liberia is confronting a banking-sector credit squeeze tied to more than US$100 million in loans that are not being repaid, according to conference documents cited by The Liberian Investigator and distributed by AllAfrica. The report says the unresolved debt is limiting financing for farmers, traders and small businesses even though banks are holding deposits and remain cautious about lending.

President Joseph Nyuma Boakai opened a three-day national conference in Monrovia on Wednesday, telling bankers, lawmakers, judges and regulators that unpaid loans ultimately raise costs for ordinary people and slow growth. He linked the effort to his ARREST Agenda for Inclusive Development and urged participants to leave with concrete assignments rather than general recommendations.

The article says Liberia’s non-performing loan ratio stood at 19.1% in December 2024, well above the Central Bank of Liberia’s 10% ceiling, before falling to about 12.87% by December 2025. The documents attribute much of the improvement to write-offs and restructuring rather than stronger repayment. They also note that private sector credit remains low relative to regional levels, while banks’ loan-to-deposit ratios show ample liquidity.

Finance Minister Augustine Kpehe Ngafuan said delayed government payments to vendors can worsen repayment problems. Central Bank Governor Henry F. Saamoi and World Bank Country Manager Georgia Wallen both called for coordinated reforms, including better credit reporting, collateral systems, legal enforcement and borrower discipline. The conference is expected to produce a roadmap for policy and institutional changes.