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Written by Our Senior Staff
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Friday, 10 August 2012 05:45 |
The Central Bank of Liberia (CBL) has warned delinquent borrowers, corporates as well as individuals against continuous reneging on servicing their obligations to commercial banks operating in Liberia.
The CBL said it has over the years made efforts to improve the general credit environment and strengthen the internal risk management practices in commercial banks.
The bank said individuals and entities in such habit cannot continue to enjoy the benefits of the banking system on the one hand, while at the same time undermining the viability of the system through their actions on the other hand.
The CBL said, “ Pursuant to Section 39 (2) of the new Financial Institutions Act of 1999, which gives the CBL the authority to govern and regulate activities and relationship between financial institutions, their customers, creditors and debtors,” the Central Bank has the mandate to issue a public notice at the appropriate time as such.
In furtherance of this, the CBL said all existing delinquent borrowers with outstanding loan obligations that are past due for 180 days or more, as defined by CBL Prudential Regulation No. CBL/SD/004/2010, are hereby advised to immediately contact banks that they are delinquent to, in order to reach an agreement on a repayment arrangement for the servicing of their obligations within thirty days as of August 7,2012 to September 22, 2012.
Meanwhile, the CBL has announced granting a waiver on the full payment of all accrued delinquent interests, as required by Section 3.15 of Prudential Regulation #: CBL/ SD/007/2011, as a means of helping delinquent borrowers to establish a new debt servicing arrangement within a period of thirty days, ranging from August 7, 2012 to September 22, 2012.
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