Regulatory Alerts2013-09-05
Amended Directive Barring Commercial Banks and Other Regulated Financial Institutions from Providing Services to Delinquent Borrowers That Failed to Resolve Their Status
The Central Bank of Liberia directs all commercial banks and regulated financial institutions to restrict banking services for delinquent borrowers who have received multiple notifications but failed to resolve their overdue obligations. These institutions must classify borrowers by debt size and apply specific credit limits, restricted borrowing periods, and monthly reporting requirements depending on whether the borrowers fully pay off or restructure their debts. Non-compliant financial institutions face daily fines of at least L$200,000 and supervisory sanctions for violating these service restrictions, which take effect immediately upon issuance.
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