Liberia's Non-performing Loans Fell to 12.5% in 2025 Amid Write-offs and Restructuring
President Joseph Nyuma Boakai opened a three-day national conference at the EJS Ministerial Complex focused on resolving bad debt. Central Bank figures show non-performing loans dropped from 19% to 12.5% by end of 2025, though officials warn the decline stems largely from restructuring and write-offs rather than cash recovery.
President Joseph Nyuma Boakai Sr. opened the National Conference on the Resolution of Non-Performing Loans at the EJS Ministerial Complex on Tuesday. The event gathered bankers, regulators, lawmakers, judges, and development partners to address debt issues affecting farmers, entrepreneurs, and depositors.
Central Bank data presented at the conference indicates non-performing loans reached 19% of total loans by the end of 2024. By the end of 2025, this figure fell to between 12.5% and 12.9%, depending on the calculation method used. Officials clarified that the reduction resulted primarily from loan restructuring and write-offs.
This decline created an uncomfortable economic contradiction: Liberia faces high bad debt simultaneously with insufficient access to new credit. The Central Bank reported domestic credit to the private sector sits at approximately 15% of GDP, while the loan-to-deposit ratio hovers around 35%. Nearly 40% of surveyed businesses identified finance access as their primary obstacle.
World Bank Country Manager Georgia Wallen stated that resolving non-performing loans is central to Liberia's growth and employment agenda. The Central Bank emphasized its requirement for strict prudential regulation to prevent further accumulation of bad debt.
