IMF recommends troubled Kabul Bank be wound down
Last Updated: Thursday, February 17, 2011, 00:08
  
Kabul: The International Monetary Fund is recommending that Afghanistan's troubled Kabul Bank be placed into receivership and then be quickly sold off.

The IMF made the recommendations in a statement late yesterday, following a visit by fund officials. It says Afghan authorities should put together a "transparent, credible and fully financed" plan to settle problems at the country's largest bank.



The IMF says placing Kabul Bank into receivership "a type of bankruptcy" is "the most appropriate mechanism" for resolving problems at the bank.

Kabul Bank has been hounded by allegations of mismanagement, cronyism and questionable lending. Afghanistan's Central Bank took control in mid-September, following a run on the lender.

PTI


First Published: Thursday, February 17, 2011, 00:08


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