The Central Bank of Liberia (CBL) has clarified that its newly issued regulatory directive on insurance-backed court bonds does not suspend or prohibit bond issuance, nor does it restrict constitutional rights to bail. Instead, the measure introduces a pre-approval process to ensure only financially stable institutions can issue bonds, safeguarding judicial and financial integrity.
Monrovia, Liberia – — The Central Bank of Liberia (CBL) has moved to clarify misconceptions surrounding Directive No. CBL/ID/DIR/001/2025, emphasizing that the regulation does not ban court bonds or impede bail rights but establishes stricter oversight to prevent insolvent insurers from issuing unreliable bonds.
The reform, initiated in 2022 following concerns raised by the Supreme Court of Liberia, aims to strengthen financial accountability after judges reported cases where insurance companies lacked the capacity to honor appellate bonds. Over a two-year consultation period, the CBL engaged the judiciary, insurers, and brokers to refine the policy before its finalization in May 2025.
Under the new rules, insurers must submit audited financial statements and details of outstanding bonds for pre-approval before issuing new ones. This ensures only solvent institutions participate, aligning Liberia’s practices with global standards.
The CBL stressed three critical points:
1. No suspension of bonds – The directive does not halt court bond issuance.
2. Financial vetting – Institutions must prove stability before approval.
3. No rights violation – The right to bail remains fully protected.
The CBL noted close coordination with the **Supreme Court, including multiple consultations in 2024 and 2025, to align the policy with legal and financial safeguards. The bank reiterated its commitment to transparency and invited stakeholders to seek accurate updates directly from its communications team. This measure, the CBL says, reinforces public trust in Liberia’s financial and judicial systems while preventing defaults that could undermine legal processes.
