….Signs Pact Two Commercial Banks on Credit Authority
By: J. Baitermeayea Hilton, III/077219227
The Central Banks of Liberia (CBL) and two commercial banks, ECOBANK Liberia Limited and the International Bank have signed an agreement launching a partnership between USAID and two of our commercial banks aimed at increasing credit to small and medium sized enterprises(SMEs).
Speaking at the signing Ceremonies at the Central Bank’s Conference Room, CBL Governor Dr. Mill Jones said emphasis is being placed on agriculture in this agreement.
Agriculture, Executive Governor Jones said, is believed to be key to sustained growth and development, adding that in particular Agriculture will help deal with its balance of payments problem over the longer term.
“The heart of the program is a credit guarantee scheme, with USAID’s Development credit Agency sharing the lending risks with the banks involved for businesses that qualify under the program,” Dr. Jones told journalists at the signing of the agreement.
In his prepared text, the Central Bank Governor added, “I need to make one point clear; this is not an opening for businesses or individual entrepreneurs to borrow and not repay. The banks themselves will continue to do the requisite due diligence.”
He explained that against this background, the various business professional organizations have a responsibility to impress upon their membership that the efforts put into getting this credit guarantee scheme operational in Liberia will not be sacrificed by those who might not respect the need to honor financial commitment to the detriment of others who would see this as an opportunity to develop or expand their businesses.
“The need to improve the credit cultured in Liberia is the responsibility of all of us. For our part, the Central Bank of Liberia will remain a friend of the business sector and will continue to work to support the enhancement of Liberia entrepreneurship,” Dr. Jones assured.
According to him, “We leave here today thankful to the Government of the United States, an enduring partner in Liberia’s upward march to lasting peace, development and shared opportunities,” saying “We are pleased to be a part of an exercise that buttresses a position we have enunciated on several occasions and that is the need to strengthen the private sector to be able to mere effectively play its role as the engine of growth in the Liberia economy.”
He said part of this effort is to ensure the availability of financing on appropriate terms for existing small and medium sized enterprises and for entrepreneurs who want to start new businesses.
“We are hopeful that such exercise would not just be concentrated in Monrovia. But would be expanded to include SMEs throughout Liberia. We look forward to the involvement of other commercial banks and financial institutions in such a laudable undertaking,” he said further.
The CBL Executive Governor contended, “Let us make no mistake about it; Capitalism requires capital, and without capital all we have is ism. “So this is why we have been working so hand to grow and improve the banking system; to encourage competition; to move forward with out recapitalization plan; and to support the expansion of bank branches throughout the country.”
Also Speaking at the at the Signing ceremony, USAID Liberia Mission Director, Madam Pamela White said that Liberian is now getting to an exciting point in its recovery. The USAID Director maintained that the ceremony symbolizes the beginning of this important step.
The United States diplomat thanked the government for the hard work and many successes it has made since 2005; she also thanked the international community’s unwavering commitment to Liberia, a country, which she said, now finds itself entering a phase where the economic climate will allow the private sector to increase its importance as the engine for economic growth she said.
Madam white recalled that the shut down of many businesses during the 14-year civic conflict
in Liberia led to enormous lasses in productivity and prosperity. She said major among the lasses were those in the agricultural sector.
She noted Liberia’s under developed agricultural sector, which in her view, is holding the country back from realizing its potential.
USAID Liberia Mission Director reasoned that the women are the foundation on which this country’s agricultural sector is built, but added that currently the women find their efforts hampered by a lack investment capital to expand their business ventures.
USAID Director White also averred that launching of USAID’s Development Credit Authority Program will directly address the issue by easing the access to credit for small and medium sized enterprises in the agricultural sector in the country Liberia and allowing women entrepreneurs to make the expansions their businesses need to grow financially.
According to Madam White the opportunity of the credit goes with responsibility. According to her, USAID with its development credit authority and the American people are providing Liberian businesses in the Agricultural and energy sectors with those opportunities but those opportunities are not without responsibility.
She maintained the only way this program will work is if Liberian businesses shoulder responsibility of repay loans taken from the banks. Madam white also urge all Liberian entrepreneurs to use this opportunity wisely for the improvement of their businesses.
Meanwhile, the General Manager of ECOBANK, (Liberia Limited), Mr. Kola Adeleke has
pledged the Bank’s support to the initiative made possible by USAID in partnership with his bank and the International Bank. He said this gesture is yet another important milestone in the collective guest for national development and poverty reduction strategy of government.
Agricultural, Mr. Adeleke said, has been the bedrock of the Liberian economy, and Liberia’s
Economic development is therefore directly linked to the progress of the Agriculture sector.
The ECOBANK boss also called on all well meaning Liberians to take advantages of these investment opportunities, commending the Government President Ellen Johnson Sirleaf for providing the enabling environment that allows banking institutions assume their proper and effective role in the economy recovery program of the country.
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