Afghan Central Bank:
Afghanistan struggling to recover Kabul Bank lost assets
Date : Wednesday 4 January 2012 12:45
Officials in Afghan Central Bank (Da Afghanistan Bank) on Tuesday said, the government of Afghanistan is struggling to recover public deposit money which was lost during the collapse of Kabul Bank around a year ago.
Around $900 million was reportedly lost the nation’s largest private financial institution Kabul Bank collapse New York Times said.
The move by the Afghan government is expected to hearten the Afghan government’s international backers, like the United States.
Da Afghanistan Bank officials said, a delegation of the government’s Financial Disputes Resolution Commission is visiting Dubai in the United Arab Emirates, where many favored borrowers bought real estate with cheap loans from the bank.
The officials further added, the delegation is to hire a representative company there to oversee the sale of assets repossessed from borrowers.
According to Da Afghanistan Bank officials, Noorullah Delawari Chief of Da Afghanistan Bank following his visit to United States of America last month detailed the International Monetary Fund and the World Bank officials with the efforts to recover the lost public money.
This comes as the International Monetary Fund earlier in October announced to renew its credit program with Afghanistan.
The government of Afghanistan still needs to recover some lost money despite recouping majority of the money lost in the bank’s collapse.
According to Ministry of Finance of Afghanistan and Kabul Bank’s receivers, sales of seized assets might recoup nearly half the total.
Story Code: 34636
Source : Afghan Voice Agency (AVA), Kabul