Delinquent borrowers – corporate as well as individuals – who continue to renege on servicing their financial obligations to commercial banks, cannot continue to enjoy the benefits of Liberia’s banking system.
A press release issued by the Liberia Bankers Association (LBA) yesterday said the Association with the backing of the Central Bank of Liberia (CBL) has decided to resume the publication of non-compliant delinquent borrowers, which started in April, 2013.
The publication, which commenced on Monday, October 10, will continue through October 28, starting with outstanding loan balances of US$1 to US$9,999.00.
The LBA said as a further measure against this category of borrowers, members of the association along with Diaconia Deposit-taking Microfinance Institution and Liberia Enterprise Development Finance Company (LEDFC) will ensure the strict enforcement of CBL directive of April, 2013 which states that “No commercial bank will do business, including making payments on their behalf, maintaining existing accounts or operating new accounts, with delinquent debtors that failed to conclude debt-servicing arrangements with their respective commercial banks, including their related companies and principals/shareholders.”
The LBA said the Central Bank of Liberia (CBL) has over the years made significant efforts to improve the general credit environment through prudential standards and international best practices.
“While the CBL, working with the commercial banks, has exercised flexibility in allowing commercial banks to reach out to their delinquent borrowers in order to work out acceptable arrangements, it has been observed that some delinquent borrowers, corporates as well as individuals, continue to renege on servicing their obligations to the banks in flagrant disregard for the loan contracts signed with the banks,” the LBA noted.
The LBA reminded all delinquent borrowers that it reserves the right to take further action, with the support of the CBL, against delinquent borrowers, in the interest of depositors, the banking system, and the Liberian economy.