SOURCE: Liberian News Agency
By Francis K. D. Cooper
MONROVIA, March 30(LINA) -The Central Bank of Liberia (CBL) has warned delinquent borrowers of commercial banks to regularize their indebtedness by the end of March 2023, saying that failure to do so will lead to grave consequences as provided by the regulation governing the country’s banking sector.
It can be recalled that on December 12, 2022, CBL issued a Press Release regarding the situation of the non-performing loan system (NPLS) in the banking sector due to the non-compliance of delinquent borrowers to repay or restructure their indebtedness to the commercial banks.
In a statement issued Wednesday, March 29, 2023, the CBL stressed that the action of these delinquent borrowers does not only breach contract agreement with the commercial banks but also a violation of its prudential regulation and detrimental to the health and viability of the system.
According to the recent press statement, the Central Bank of Liberia commended non-compliant delinquent borrowers who have taken steps to regularize their obligations.
It added: “The Bank would like to remind all non-compliant delinquent borrowers about the mandate of its Press Release and hereby urges all non-compliant borrowers to ensure that they regularize their indebtedness to the banking system by the end of the first quarter of this year which is the end of March 2023.”
It said the CBL emphasizes that non-compliant delinquent borrowers failing to regularize their indebtedness within the stated timeframe will be subjected to appropriate supervisory actions in keeping with CBL’s Regulation.
“As mentioned in the press release, these actions may include, but are not limited to, restriction from accessing banking services within Liberia,” the CBL stated.
Meanwhile, all commercial banks have been mandated by the CBL through the Liberia Bankers Association (LBA) to compile and submit the list of non-compliant delinquent borrowers to the CBL before the end of March 2023.
LINA FKC/IAS/PTK