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$50m Kabul Bank loans to be recovered in 2 weeks

$50m Kabul Bank loans to be recovered in 2 weeks

Feb 27, 2013 - 17:00

KABULinfo-icon (PANinfo-icon): Kabul Bank loans worth $50 million would be recovered in a fortnight through the auction of defaulters’ property, the central bank governor announced on Wednesday.

Da Afghanistaninfo-icon Bank Governor Noorullah Delawari told reporters in Kabul $175 million loans had already been repaid to the bank, whose recovery would reach $225 million over the next two weeks.

The government took over part of the bank after it came to the verge of collapse as a result of issuing unauthorised loans.

Delawari said an amount of $270-300 million belonging to the bank remained unaccounted-for. Apparently, he added, the money had been illegally transferred abroad, but the government was doing its bit to recover it. 

Only one country, where the Kabul Bank money was stashed, has promised cooperation with Afghanistan, according to the official. Without naming that country, he linked the 2009 banking crisis to illegal credit of $835 million.

Kabul Bank’s former chairman Sher Khan Farnoud and CEO Khalilullah Ferozi are among the 22 people accused in the big-time fraud case.

Drago Kos, the chief investigator who looked into the scandal, vowed last year to put the perpetrators behind bars. Without giving details, he said a dozen shareholders and seven private companies were involved in the massive scam.

Delawari hinted the court would soon hand down its verdict in the case, hoping the government would be able to recover the money it had spent on reinforcing the Kabul Bank.

The central bank, with the cooperation of the finance ministry, has already set in motion the bidding process for the bank in compliance with a cabinet decision on its privatisation.





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