English | دری

Afghanistan, IMF discuss privatization of New Kabul Bank

in Afghan Business

Afghanistan, IMF discuss privatization of New Kabul Bank

Afghan Finance Ministry and the International Monetary Fund (IMF) are holding discussions over the privatization of the loss-making New Kabul Bank.

This comes after the Afghan government failed to find a suitable buyer for the bank.

In December of last year, Afghan Finance Ministry had proposed to the presidential palace merging of the three national banks of Afghanistan—Bank Millie Afghan, the New Kabul Bank and Pashtanay Bank—and forming one stronger national bank.

The IMF has not yet revealed its plans, and they are in the process of evaluating options with the Afghan government and the central bank regarding the state banks.

Kabul Bank was seized by the government in 2010 after the exposure of a staggering USD 900 million fraud, which led the International Monetary Fund to temporarily halt its hundreds of millions of dollars of loans to the country.

Renamed New Kabul Bank, the institution was bailed out by the government and has been under the supervision of the central bank (Da Afghanistan Bank).

The Kabul Bank scandal, known as the “Ponzi Scheme”, involved transfer of about USD 900mn to 19 individuals and companies, including the Bank’s shareholders and relatives of prominent Afghan politicians.



Related Articles

Samangan launches women’s Shuras and starts women’s rights awareness campaign with German help

Women all around Samangan celebrated the launch of the province’s first women’s shura councils on Sunday. Backed by the German

Brussels Conference reinforces role of Afghan women

With the overall aim of generating international support for the Afghan reform process and ensuring continued international political and financial

Afghan national income reduced by 20% due to elections

Afghan Finance Ministry official announced Saturday that the national income was reduced by 20% due to the prolonged election process.

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.