Central Bank of Liberia Refutes Claims of Imminent Collapse of Dr Paa Kwesi Nduom’s SIB Liberia Limited
The Central Bank of Liberia (CBL) has vehemently debunked claims that two leading banks in that country, including Dr. Paa Kwesi Nduom’s SIB Liberia Limited are on the verge of collapse.
The other bank is the International Bank Liberia Limited (IBLL).
Earlier reports in portions of the Liberian media on August 8, 2024, claimed that the coffers of the two major commercial banks were drying out, prompting customers to seek withdrawals.
SIB Liberia, owned by Dr. Nduom, allegedly started facing challenges when it acquired a troubled bank, First International Bank (FIP), and assumed its liabilities totaling around US$23 million.
Per the reports, the bank then paid US$14.7 million of the legacy depositors’ liabilities inherited from the defunct FIBLL and relied on the Central Bank to pay the remaining US$8.5 million to the legacy depositors, because paying US$14.7 million out of its working capital significantly impacted its cash flows.
The CBL Board of Governors was said to have upheld the bank’s request and approved the payment of the outstanding legacy deposit liabilities of US$8 million, after a thorough review of the matter over two years.
The was however delayed until the bank sought the Liberian president’s intervention, before the Board of Governors of the CBL passed a resolution on May 17 authorizing the payment of the US$8 million.
The report said despite the approval for the payment, customers are reportedly still finding it difficult to withdraw their money.
The Pro-Democracy Movement, The Green Revolution of Liberia, is said to have expressed concern over “numerous complaints in the public regarding staggered payment of withdrawals, which points to a liquidity crisis at your bank.”
CBL Response
But in a swift response, the CBL described the reports in the media as “categorically untrue” and urged the public to completely disregard the “misinformation”.
In a statement, the Central Bank said it considers the August 8 media reports as impulsive claims that are not only misleading, unfounded and damaging for the existing confidence in the Liberian economy but also completely unsupportive of the relevant financial statistics published by the CBL regarding the two banks.
“The CBL hereby informs the public that the financial positions of the banks remain robust with their liquidity and capital reserves above the regulatory requirements of the CBL, implying that the banks are in full compliance with regulatory thresholds of capital and liquidity under the supervision of CBL,” the statement said.