MONROVIA— Liberia has reached a broad national consensus that resolving non-performing loans (NPLs) is a critical national development priority rather than just a banking-sector concern. Unlocking credit requires coordinated action across the Executive, Legislature, Judiciary, Central Bank of Liberia (CBL), financial institutions, private sector actors, and international development partners.
This consensus emerged at the conclusion of the National Non-Performing Loans Resolution Conference, held under the theme: “Resolving Non-Performing Loans to Unlock Access to Finance for Private Sector Growth and Job Creation.” The gathering brought together key national leaders, international diplomats, legal experts, and business representatives to move past mere diagnosis and transition toward implementing practical solutions that enforce credit discipline, enhance debt recovery, and expand access to capital.
Presidential Leadership and National Priority
Delivering the keynote address, President Joseph Nyuma Boakai placed the NPL challenge directly within the framework of the ARREST Agenda for Inclusive Development (AAID). He emphasized that resolving bad debt directly affects Liberian farmers, entrepreneurs, and small businesses seeking capital to expand operations and create employment.
President Boakai noted that too many loans currently remain unpaid and called for responsible practices from all parties in the credit ecosystem. He urged banks to lend responsibly, borrowers to honor their debts, and the government to strengthen infrastructure such as credit reporting systems, collateral registries, and insolvency frameworks. Emphasizing that Liberia has seen enough diagnostic reports, President Boakai urged stakeholders to focus strictly on realistic implementation timelines and measurable results.
Reinforcing this call, Vice President Jeremiah Kpan Koung stated that the primary challenge moving forward is execution. Pointing out that NPL resolution directly impacts overall national economic performance, he announced the creation of a National Non-Performing Loan Resolution Taskforce on behalf of the President. Composed of the Ministry of Finance and Development Planning, the Ministry of Justice, and financial sector representatives, the taskforce is charged with establishing clear timelines, coordinating institutional efforts, and monitoring progress.
Financial and Economic Leadership Vision
Executive Governor of the Central Bank of Liberia, Henry F. Saamoi, highlighted that although Liberia’s NPL ratio declined from 19.1 percent in 2024 to 12.9 percent in 2025, this statistical reduction has not yet translated into broader economic recovery or expanded credit access. Governor Saamoi emphasized three non-negotiable deliverables from the conference: a National NPL Resolution Communiqué, a time-bound Action Plan, and an Implementation Roadmap detailing specific institutional responsibilities.
Minister of Finance and Development Planning Augustine Kpehe Ngafuan linked NPLs directly to job creation, noting that non-performing assets represent frozen capital that should be fueling productive business activity. Minister Ngafuan also acknowledged the government’s own historical role in creating payment arrears to contractors, which can cascade into banking defaults. He pledged that the government is actively working to restore credibility by honoring its vendor obligations and leading by example.
Judicial, Legislative, and International Alignment
International partners reinforced the necessity of immediate structural reform. World Bank Country Manager Georgia Wallen identified four core priorities: building trust in the financial system, addressing both sides of the credit dynamic, recognizing distressed loans early, and resolving them efficiently. U.S. Embassy Chargé d’Affaires Joseph Zadrozny drew from the American experience to emphasize that transparent rules, reliable credit information, national identification systems, and enforceable contracts are fundamental to building investor confidence.
From a legal and legislative perspective, leaders agreed that bad debt recovery is fundamentally a rule-of-law issue. Minister of Justice Oswald Tweh committed his ministry to reviewing and modernizing debt enforcement and contractual frameworks. Concurrently, Speaker of the House of Representatives Richard Nagbe Koon and Chairman of the Senate Committee on Banking & Currency Hon. Cllr. Joseph K. Jallah pledged full legislative support. Both houses committed to passing reforms that modernize insolvency procedures and collateral enforcement, specifically aiming to protect access to capital for small businesses and women entrepreneurs.
A Unified Commitment to Action
The conference closed with an unprecedented alignment across all arms of government, financial authorities, and development partners. The Central Bank of Liberia expressed appreciation to all participants, including delegates from regional central banks who provided comparative insights into financial stability across Africa.
The unified message across Monrovia remains clear: Liberia cannot achieve broad-based economic prosperity without expanding access to finance, and unlocking finance requires resolving non-performing loans once and for all. Success will not be measured by conference speeches, but by whether Liberian farmers, entrepreneurs, and businesses receive the capital they need to grow the national economy.
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