CBL to Convene National Conference to Tackle Non-Performing Loans

By Feeme M. Wantee

Monrovia, Liberia – August 13, 2026 — The Central Bank of Liberia (CBL) is preparing to convene a national conference aimed at finding practical solutions to the country’s growing non-performing loan challenge, a problem the regulator says is constraining banks’ ability to extend credit to businesses and entrepreneurs.

The National Non-Performing Loans Resolution Conference, scheduled for September 9–11, 2026, will bring together banks, government institutions, businesses, policymakers and other stakeholders to examine the causes of loan defaults and develop strategies for resolving bad loans and restoring the flow of credit to the private sector.

The conference will be held under the theme, “Promoting Access to Finance to Support Private Sector Growth and Job Creation.”

The Central Bank announced the conference during a press briefing at the Ministry of Information in Monrovia. The CBL delegation included Mohammed Fonsia Donzo, Senior Director for Regulatory Affairs, and Musa Kamara, Senior Technical Advisor to the Executive Governor.

At the center of the conference will be the impact of non-performing loans on Liberia’s financial system and the wider economy.

Non-performing loans are credit facilities on which borrowers have failed to make required repayments according to agreed terms. While some loan defaults are considered normal in any banking system, the CBL says a significant increase in non-performing loans can weaken banks’ capacity and willingness to issue new credit.

Donzo said lending remains one of the most important functions of commercial banks because credit enables businesses to expand, invest and create jobs.

“One of the major functions of banks is to grant credit to the private sector to help grow the economy and create jobs,” Donzo said.

He explained that banks depend on loan repayments to recover funds and recycle them into new loans for other borrowers. When borrowers fail to repay, however, banks can face difficulties recovering their money, potentially reducing the amount of financing available to the economy.

“As non-performing loans continue to grow, banks become reluctant to give new loans, and therefore businesses that want to grow are denied the opportunity to have access to new credit,” Donzo noted.

The CBL considers the issue a major constraint on private-sector development because businesses rely on affordable credit to expand operations, invest in new ventures and employ more workers.

The problem is not unique to Liberia. Banks worldwide experience loan defaults and typically make provisions for loans that may not be recovered because of unforeseen circumstances. The concern, according to the CBL, arises when the level of non-performing loans becomes large enough to undermine the overall lending capacity of financial institutions.

The September conference is therefore expected to focus not only on the scale of the problem but also on how bad loans can be resolved, how borrowers and lenders can improve their relationships, and how the banking system can resume stronger lending to productive sectors of the economy.

As part of broader efforts to improve access to finance, the CBL is also implementing other financial-sector reforms, including the development of a Collateral Registry.

The registry is intended to allow businesses and individuals to use movable assets as collateral when seeking loans. The initiative could benefit borrowers who lack traditional collateral such as land or buildings but own other valuable assets that can support their applications for credit.

The CBL says the Collateral Registry is one of several measures aimed at improving access to finance and strengthening the financial system.

Musa Kamara, Senior Technical Advisor to the Executive Governor, is also expected to contribute to discussions on financial-sector reforms and measures to improve the flow of credit to productive areas of the economy.

For Liberia’s private sector, the outcome of the conference could be significant. Persistent loan defaults can restrict banks’ ability to lend, while limited access to credit can make it more difficult for businesses to expand and create employment.

The conference will consequently provide an opportunity for stakeholders to move beyond identifying the causes of non-performing loans and consider concrete mechanisms for loan recovery, restructuring, improved lending practices and stronger borrower-bank relationships.

The CBL maintains that resolving non-performing loans and expanding responsible access to credit are critical to building a stronger financial sector and supporting sustainable private-sector growth.

The September gathering is expected to serve as a platform for stakeholders to develop workable solutions to Liberia’s non-performing loan problem while creating conditions for banks to lend more effectively to businesses and entrepreneurs.

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