SIB Liberia Ltd (SIBL), a bank owned by a Ghanaian millionaire, is reportedly facing insolvency issues in Liberia. The bank’s financial troubles are linked to its acquisition of liabilities from the defunct First International Bank Liberia Ltd (FIBLL) in 2020. SIBL assumed FIBLL’s liabilities totaling approximately $23 million, paying $14.7 million of the legacy depositors’ liabilities out of its working capital.
This heavy payout significantly impacted its cash flows. The bank relied on the Central Bank of Liberia (CBL) to pay the remaining $8.5 million to the legacy depositors, some of whom threatened legal action against the bank. The bank appealed to the CBL to intervene, arguing that the debt rightfully belonged to the Government of Liberia and the central bank.
After a thorough review, the CBL board of governors approved the payment of the remaining $8 million. However, this payment had not been executed at the time of the report. Amid these concerns, customers have been rushing to withdraw their savings, worsening the situation.
ghanaian bank struggles with insolvency
The Central Bank of Liberia has intervened to stabilize the bank, but public confidence remains shaken. The financial turmoil is not confined to SIB Liberia Ltd.
The coffers of International Bank Liberia Ltd (IBLL) are also reportedly drying out. Documents show that IBLL’s total assets amount to $177,770,024, while total liabilities are $157,740,961. The reports of insolvency at these two major banks have raised significant public concern and have prompted customers to make withdrawals in large numbers.
While the CBL has taken steps to address the issues, the situation remains uncertain, and confidence in Liberia’s banking sector hangs in the balance. The Pro-Democracy Movement, The Green Revolution of Liberia, expressed concern over “numerous complaints in the public regarding staggered payment of withdrawals, which points to a liquidity crisis at your bank.”
The future of SIB Liberia Ltd and IBLL remains uncertain. Their recovery will likely depend on the measures implemented by the Central Bank of Liberia and other stakeholders in the financial industry.
Many are looking to the central bank for leadership and solutions to restore confidence in the banking sector.
- GhanaWeb.”Is Nduom’s bank in trouble in Liberia?”.
- AsaaseRadio.”Bank belonging to Ghanaian millionaire in Liberia reportedly faces insolvency challenge”.
- FrontPageAfricaOnline.”Liberia: Two Commercial Banks Reportedly Facing Insolvency: SIB Liberia and IBLL, Edgy Customers Seek Withdrawals”.