Yesterday, we communicated with the Senate regarding the CBL’s issuance of guarantees on non-performing loans, advances, deposits, and lawsuits assumed by Sapelle International Bank Liberia Limited (SIBLL) and Bloom Bank during their purchase transactions. It’s important to note that these guarantees have partially been honored by the CBL. The issuance of carte blanch guarantees by the CBL Board to cover losses at insolvent commercial banks may necessitate increases in the Bank’s contingent liabilities and decreases in its reserves position. As the custodian of our country’s monetary policy, the CBL was not established to function as a charity institution, especially foreign-owned banks, in the name of financial stability.
We hope the Banking and Currency Committee will promptly investigate this matter to ensure transparency and accountability at our country’s Bank of last resort.
