Liberia non-performing loan crisis and response

President Joseph Nyuma Boakai has identified non-performing loans exceeding US$100 million as a major barrier to Liberia’s economic growth. He warned that these unpaid debts cause banks to become overly cautious, making credit more expensive and difficult for farmers, entrepreneurs, and small businesses to access. While the system-wide non-performing loan ratio reportedly fell to approximately 12.87% by December 2025, reports suggest this decline was largely due to write-offs and restructuring rather than actual repayments.

In response to these challenges, the Liberian government announced the establishment of a National Non-Performing Loans Task Force. Announced by Vice President Jeremiah Kpan Koung, the initiative aims to move from policy discussion to a coordinated national response. The task force will include the Central Bank of Liberia, the Ministry of Finance and Development Planning, the Ministry of Justice, financial institutions, and development partners. The group is tasked with addressing existing bad loans and strengthening systems to prevent future accumulation through a formal implementation action plan.