MONROVIA, Liberia—In the wake of the Ebola crisis in this country, regulators have taken a number of steps that seek to revitalize the rural economy. The Central Bank of Liberia, working with the Rural Community Finance Institutions (RCFIs), the Liberia Credit Union National Association, and the National Apex of the Village Savings and Loan Associations (VSLAs) to broaden access to finance for rural Liberia.
Three specific measures are being taken, according to AllAfrica.com:
- The introduction of a six-month grace period to beneficiaries under the CBL microfinance program to allow members of the rural non-bank financial institutions and businesses to rebuild their businesses.
- Recapitalization of some beneficiary institutions to restart and enhance economic activities of group members and the extension of new loans intended to inclusively impact businesses in rural Liberia.
- Funds are being channeled to a microfinance program involving credit unions and the Rural Community Finance Institutions, among others, in order to expedite the disbursement process, especially for businesses seeking loans up to the equivalent of US$7,000.
Liberia’s Central Bank said another reason for the new moves is slow pace of some commercial banks in the disbursement of funds for on-lending to Liberian businesses under the CBL's stimulus initiatives.
The World Council of Credit Unions (WOCCU) recently said it was still awaiting clearance from the government before restarting a program it has in place in Liberia.