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Commercial Banks Drop L$39.2m Into Liberian Economy
MONROVIA, April 1 (LINA) - Total credit from commercial banks to all sectors of the Liberian economy has amounted to L$39,249.3 million, the Central Bank of Liberia (CBL) has reported.
The amount, according to the CBL 2016 annual report released recently, indicates 15.6 percent increase at the end of November 2016 relative to the amount recorded at the end of December 2015.
According to the report, expansion in credit was mainly due to resumption of economic activities which were triggered by the improved and promising energy and road infrastructures.
The report indicated that the main drivers of credit growth during the year under review (2016) were the Construction and Mining Quarrying sectors.
The report also stated that loans and advances to the trade sub-sector as part of the trade, hotel and restaurant sector as well as “others sectors” contributed significantly to the credit growth in the year.
The report said mining and quarrying expanded by 21.7 percent; and the “others sectors” by 87.3 percent.
The report explained that the “others sector” comprises loans and advances to individuals, the government sector and loans not classified under any particular sector.
Indicating that as in the previous year, the private sector accounted for nearly 98.0 percent of total credit for the period, the report pointed out.
The report noted that the contribution of the private sector to credit growth reflects the growing activities in the sector which is necessary for the balanced and sustainable growth and development of the economy.