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New Kabul Bank merger into Agri Development Fund opposed

New Kabul Bank merger into Agri Development Fund opposed

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May 10, 2016 - 12:17

KABULinfo-icon (Pajhwok): The Ministry of Finance (MoF) on Tuesday said the High Economic Council (HEC), opposing the merger the New Kabul Bank, has stressed an effective plan to save the institution and improve the banking sector.

A statement from the ministry said the HEC, at a meeting on Monday, discussed the privatisation of the New Kabul Bank and other economic issues. MoF officials shared with the council progress in privatising the New Kabul Bank.

The council believed merging the bank with the agricultureinfo-icon development fund to provide financial services to farmers was not a good option.

It tasked a team of experts to assess the situation of the New Kabul Bank and evolve an effective plan in consideration of the current state of Da Afghanistaninfo-icon Bank (DAB) to the benefit of all institutions concerned.

MoF had previously announced that Join Stock and Pakistaninfo-icon’s Muslim Commercial Bank (MCB) were qualified for purchasing the New Kabul Bank.

However, selling the Kabul Bank to the MCB sparked an angry reaction from the Meshrano Jirgainfo-icon -- or upper house of the parliament. The Senate decided the Pakistani bank should be expelled from the bidding process.

Kabul Bank, once the country’s largest private-sector lender, plunged into deep financial crisis due to the issuance unauthorised loans and other anomalies.

Reports put at 937.7 million the loans issued to a number of people, including the stakeholders.The government has so far recovered $437 million. Twenty-four defaulters have paid back their debts until now.

mds/mud

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