The National Bank of Tajikistan (NBT) has withdrawn licenses from two bailed-out banks — Tajprombank (Tajik Joint-Stock Commercial Industrial Bank for Reconstruction and Development) and Fononbank.
By Tajik central bank’s decision their licenses for carrying out banking activities were withdrawn on February 24, 2016.
The NBT notes that other directions of activities of those two organizations will be studied and discussed by NBT’s officials within the framework of the country’s legislation.
Recall, the distressed four banks being audited by the General Prosecutor’s Office are Tojik Sodirot Bonk (TSB), Agroinvestbonk, Tajprombank and state-owned Amonatbank (Tajikistan’s savings bank).
Another bailed-out lender, Fononbank, was already audited last year over suspicions that it was somehow collaborating with the banned Islamic Revival Party of Tajikistan (IRPT).
Radio Liberty’s Tajikistan Service, locally known as Radio Ozodi, reported that checks on the four banks are set to last six months. A representative for the General Prosecutor’s Office, Hotam Nazarzoda, said that the operation was being carried out at the request of the government to establish that the lenders were not being “mismanaged.”
The banks under investigation last year experienced severe problems in providing account-holders with their own savings. The shortage of hard cash also meant that banks servicing salaries — often for government departments — were unable to pay the intended recipients.
The government issued bonds to the tune of around $490 million, which then went toward covering the more than $500 million cost of recapitalizing the banks.
TSB got 2.25 billion somoni (284 million USD at current exchange rates); Agroinvestbonk 1.7 billion somoni (215 million USD); Tajprombank 450 million somoni (56 million USD); and Fononbank 80 million somoni (10 million USD).
According to official data, the list of assets of Tajprombank includes 117 properties, including the bank headquarters in Dushanbe, 22 branches across the country and bank service centers. Tajprombank possesses many residential buildings and other facilities in various regions of Tajikistan.
The list of assets of Fononbank includes 37 properties, including the bank headquarters in Dushanbe, four branches, apartments and residential buildings in various regions of the country.
