Breaking News: Bank belonging to Ghanaian Millionaire in Liberia reportedly faces insolvency challenge.

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According to FrontPage Africa, a Ghanaian millionaire’s bank, SIB Liberia Limited (SIBL), is in danger of going bankrupt in Liberia.

The bank’s acquisition of obligations from the now-defunct First International Bank Liberia Limited (FIBLL), a move that has severely strained its operations, is linked to its financial difficulties.

The bank’s decision to acquire First International Bank Liberia Limited (FIBLL) and take on its approximately US$23 million in liabilities marked the beginning of this issue in 2020.

The bank depended on the Central Bank of Liberia (CBL) to pay the remaining US$8.5 million to the legacy depositors, some of whom had threatened legal action against the bank. The bank paid US$14.7 million of the legacy depositors’ liabilities inherited from the defunct FIBLL.

It had complained that its cash flows were greatly affected by having to pay out US$14.7 million of its working capital. Thus, claiming that the debt properly belonged to the Central Bank and the Government of Liberia, the bank appealed to the CBL to step in and help discharge the outstanding responsibilities to the legacy depositors.

Following a two-year investigation, the CBL board of governors affirmed the bank’s request and authorised the US$8 million payment of outstanding legacy deposit liabilities. Nevertheless, at the time of the letter, this payment had not yet been made.

Uncertainty
Customers have been rushing to withdraw their savings in response to these worries, which has made the issue worse. The public’s faith is still affected despite the Central Bank of Liberia’s intervention to calm the situation.

The public is panicking despite the bank’s management’s assurances, and clients are swarming banks in an effort to protect their money.

The bank requested the president’s involvement because the board’s task was not being carried out promptly, claiming that “as a bank, we have done all we can to maintain the nation’s confidence in the financial industry.” Without this endeavour, the nation’s financial sector would have suffered severe harm. We want your help to make sure that the progress we have achieved to maintain operations is not lost. We have come a long way.

On May 17, 2024, the Central Bank of Liberia’s (CBL) board of governors approved a resolution authorising the payment of US$8 million. Customers are apparently still having trouble withdrawing their money in spite of this.

Concerns concerning “many complaints in the public regarding staggered payment of withdrawals, which points to a liquidity crisis at your bank” have been voiced by The Green Revolution of Liberia, a pro-democracy movement. “We were approached a fortnight ago by citizens who were having trouble withdrawing money from your bank,” the group said. As a result, we investigated the bankruptcy matter and discovered records that showed a $8 million bailout.

But SIB Liberia Limited is not the only bank facing difficulties in that nation; according to reports, the International Bank Liberia Limited’s funds are also running low.

In addition to inciting fear among consumers, the financial turbulence has drawn the attention of financial professionals and government authorities.

The Central Bank of Liberia is under increasing pressure to act more swiftly in order to avert a possible banking collapse that may have devastating effects on the nation’s economy.

As things progress, a lot of people are looking to the central bank for guidance and remedies that will help rebuild trust in the banking industry.

The viability of SIB Liberia Limited and IBLL’s recovery is still up in the air; it really depends on how well the country’s central bank and other financial industry players execute their recovery plans.

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