UPDATE: The Central Bank of Liberia has debunked reports of bankruptcy regarding two leading commercial banks operating in the country’s capital, Monrovia.

One of the banks, known was SIB Liberia Limited, which is owned by Ghanaian businesseman, Dr. Papa Kwesi Nduom, was cited in a report published by frontpageafricaonline.com, with the caption “Broke Banks?” which prompted panic withdrawals from customers following its release.

In the rejoinder issued by Liberia’s apex bank on August 8, 2024 it described the report and claims as categorically untrue.

A Liberian commercial bank owned by Ghanaian millionaire, Dr. Papa Kwesi Nduom, is on the verge of bankruptcy together with one other, International Bank Limited.

This according to the news portal, Frontpageafricaonline.com has prompted panic withdrawals from customers.

The bank, SIB Liberia Limited started facing challenges in 2020 after it decided to take over the First International Bank (FIP), assuming its liabilities to a tune of about US$23 million, the report noted.

It added that “the bank paid US$14.7 million of the legacy depositors’ liabilities inherited from the defunct FIBLL and relied on the Central Bank (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 had complained that paying US$14.7 million out of its working capital significantly impacted its cash flows.

Frontpage added that the bank appealed to the CBL to intervene in repaying the outstanding liabilities to the legacy depositors, arguing that the debt rightfully belongs to the Government of Liberia and the Central Bank.

“The CBL Board of Governors, after a thorough review of the matter over two years, upheld the bank’s request and approved the payment of the outstanding legacy deposit liabilities of US$8 million.” the report noted.

However, this payment had not been executed at the time of this report.

SSD/NOQ

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