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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