Monrovia, Liberia – The Central Bank of Liberia has taken some important steps aimed at bringing relief to major sectors of the Liberian Economy, mostly affected by the Coronavirus Pandemic.
The sectors include aviation, hospitality, tourism, agricultural and businesses involved in cross-border trading.
The move is part of new policy measures instituted by the CBL on Tuesday March 24, 2020, to ease the negative impact of the Coronavirus pandemic on the Liberian economy.
As part of the policy measures, the CBL has suspended temporarily for three months, the rule on credits (asset classification and provisioning) to borrowers in the aviation, hospitality, tourism, agricultural and businesses involved in cross-border trading.
The CBL said it took the decision considering the negative impact of the coronavirus on the cash flows of the affected sectors of the economy.
The suspension of commercial flights to and from Liberia is affecting Liberian businesses in the aviation, tourism and hospitality sectors as movement of people are restricted.
This means that commercial banks and other licensed financial institutions are required to exercise flexibility to borrowers in those sectors and categories of borrowers, including but not limited to flexible restructuring terms, on a case-by-case basis.
However the CBL said, this flexibility shall not, apply to delinquent borrowers (businesses that took loans and have not paid) prior to the outbreak.
The decisions were reached following recent consultative meetings with both Commercial Banks and Mobile Money Operators (MMOs) regarding measures intended to ease the economic burdens of the pandemic on the population.
Meanwhile, the CBL is requiring all banks and Mobile Money Operators to put in place preventive measures consistent with NPHIL health protocols.
The CBL has since reaffirmed its commitment of working closely with the commercial banks to ensure availability of liquidity in the system and assure the public not to panic.