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Financial experts give opinions on CBL Loan Scheme

By Dyrus Zinnah
 The Governor of the CBL,Dr. Mills Jones
The Governor of the CBL,Dr. Mills Jones

(mylbsonline.com/Liberia)-Liberian financial and legal experts have begun providing their opinions on the on-going Central Bank of Liberia (CBL) loan scheme.

Liberia’s former Finance Ministers, Charles Bright and Professor Wilson Tarpeh, provided open opinions on the on-going loan scheme Wednesday, July 10, 2013 at the Capitol, in Monrovia.

They made the statement while addressing the Senate’s Banking, Currency and Judiciary Committees on the CBL loan scheme at the Legislature.

During their deliberations, the two financial and legal experts described the Central Bank loan scheme as illegal.

Cllr. Wright and Mr. Tarpeh said: “The Central Bank loan scheme should be given to financial institutions and not to non-financial institutions.”

“The CBL has violated the provisions of the Act that created the entity, because it has begun giving loans to non-financial institutions,” they noted.

Commenting on the printing of currency, Cllr. Wright said: “The bank has the right to do so, in line with the Act that created it.”

“In the event of misunderstanding, the Liberian Constitution also gives the Legislature the right to approve the printing of currencies in Liberia.” He added.

Recently, the Liberian Senate took the Central Bank to task for giving loans to non-financial institutions across the country.

In recent months, CBL authorities’ gave over US$20m loan to non-financial institutions, including the Liberia Marketing Association (LMA) and the Liberian Business Association (LBA).

The situation triggered widespread criticisms against the banks’ decision.

During the hearings, the two Liberian professional experts’ opinions provided clarification on the respective functions of the Central Bank of Liberia and the National Legislature on monetary matters.

 


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