Regulatory Alerts2017-08-28
Directive Barring Commercial Banks and Other Regulated Financial Institutions from Providing Financial Services to Delinquent Borrowers that Failed to Resolve Their Delinquent Status
The Central Bank of Liberia has issued a directive requiring commercial banks and other regulated financial institutions to restrict financial services for non-compliant delinquent borrowers who have failed to resolve their overdue obligations after receiving multiple notices. The regulation classifies these debtors into microfinance, SME, and corporate categories, imposing specific limits on new credit access and payment services depending on whether they fully pay off or restructure their debts. Financial institutions must maintain a register, submit quarterly reports on affected borrowers, and face daily fines of at least L$200,000 for non-compliance.
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