Central Bank Wednesday announced that Kabul Bank’s licence has been submitted to finance ministry and that it will run under the ministry going forward.
Afghanistan’s Central Bank (DAB) said from today on Kabul Bank’s stakeholders will have no links to the bank and added that they should pay their loans and clean their accounts in a months time or face legal action.
Following President Hamid Karzai’s remarks suggesting reform in the bank, Central Bank of Afghanistan said today that the bank will be put out to tender in three months.
Head of DAB Abdul Qadir Fitrat said investigations have set Kabul Bank loans at $579 million and after Central Bank took over $47 million of that figure has been repaid.
Kabul Bank, the leading private bank in the country, was on the brink of collapse last year mainly because of mismanagement and substandard loans.
Mr Fitrat said 19 cases of fraud have been referred to Attorney General’s Office and two large corruption cases have been sent to the High Office of Oversight and Anti-corruption.
Loans will be collected and “If anyone doesn’t comply, we will take action. We will seize their properties at the order of the court. Even we are ready to confiscate their properties if they do not cooperate,” Mr Fitrat said.
