By S. Siapha Mulbah
The United States Ambassador to Liberia, Michael McCarthy, has alarmed that the financial sector of Liberia is being undermined by borrowers refusing to meet up with their obligations at banks.
He said people go to the banks for loans and refuse to comply with agreements at the various banks which is impeding financial flow and capital circulation closing opportunities for others to get assistance.
He stressed the need for financial institutions to be reimbursed by debtors in compliance to that which had been borrowed through loans and other mediums.
According to him, financial institutions are key factors just as health and electricity and as such customers must pay for what they consume.
“Those who take loans must pay back what they have borrowed. Liberia has a reputation today as a market where well-connected borrowers don’t pay back their loans, while it is wealthier consumers who have stained Liberia’s reputation,” he intimated.
With said malpractices in the banking sector, Ambassador McCarty said valuable business people with ample resources stashed away in other countries are refusing to pay high dollar debts that they accrued in Liberia.
He revealed that the commotions between banks and indebted clients at times resort into bank officials living in threat after confronting borrowers.
Ambassador Michael McCarthy made the remarks on Tuesday, December 6, 2022 at a press roundtable that highlighted funding issues for integrity institutions operating for transparency in Liberia.
At the same time Ambassador Michael McCarthy has expressed commendations to the Liberia Electricity Cooperation and the National Port Authority for reforms at the two government intuitions.
Congratulating the Liberian government on two milestone achievements, the United States Ambassador said the effort of the LEC to regularize accounts of customers, distribute meters and transformers is worthy of recognition.
“I am pleased today to recognize LEC’s effort to regularize account and distribute meters and transformers bringing many customers into compliance. There are still too many customers who are not paying their fair share, but the outlook is better today than it was,” he said.
He however encouraged the management of the Liberia Electricity Corporation to continue all efforts to ensure its financial sustainability by eliminating the scourge of electrical theft.
He further singled out progress made at the National Port Authority under the administration of its new Managing Director Diana Neboe noting that it is just two months and the port has streamlined several operations including the reduction of ghost employees in the institution’s payroll among others.
“I would also like to take this moment to single out the impressive progress made by the new Managing Director of the National Port Authority. In only two months, she has already streamlined operations, reduced ghost employees, and helped accelerate the dredging project at the Freeport of Monrovia, allowing larger ships to enter the port,” the Ambassador lauded.
In his words, the reforms at the Port Authority which helps lower the unit costs on imports under the new administration has brought new life to the infrastructure planning across the country, while she is examining options to improve facilities at the country’s major four ports across the country.
