MONROVIA, LIBERIA-The Central Bank of Liberia (CBL) says it is preparing to launch an enhanced collateral registry aimed at improving access to finance for businesses and the private sector.

The initiative is part of a broader reform being undertaken by the CBL to strengthen Liberia’s financial sector.

CBL Senior Technical Advisor to the Executive Governor, Musa Kamara, says the Bank will also host a National Non-Performing Loan Resolution Conference in early September.

Kamara emphasized that the conference will focus on promoting access to finance, private sector growth and job creation.

He noted that non-performing loans have become a major constraint on economic growth, as banks have become reluctant to extend new loans when borrowers fail to repay existing facilities.

At the same time, the CBL says it is enhancing the country’s collateral registry to improve access to credit for small businesses, individuals and larger enterprises.

CBL Senior Director for Regulatory Affairs, Mohammed Donzo, noted that the initiative is intended to strengthen the credit culture and give financial institutions greater confidence to lend.

Donzo says the collateral registry, established in 2010, initially covered only movable assets such as vehicles, inventory and household items.

The CBL Senior Director for Regulatory Affairs added that the enhanced system will now include immovable properties, such as land, buildings, and fixed machinery.

By: Chris Bestman