Two troubled commercial banks – Tajprombank (Tajik Joint-Stock Commercial Industrial Bank for Reconstruction and Development) and Fononbank — have begun to pay out savings to their customers.
The banks began to pay out savings starting from March 16, according to the Deposit Insurance Fund, which insures savings deposits of physical entities.
Recall, the Dushanbe Economic Court launched the process of liquidation of Tajprombank and Fononbank on March 9.
Special administrators appointed by the court are reportedly taking measures to meet requirements of the customers and the creditors of the banks at the expense of the banks’ assets.
The National Bank of Tajikistan (NBT) announced on February 24 that it is pulling the licenses of Tajprombank and Fononbank and is now trying to work out how to compensate account-holders.
NBT representatives said that customers of the banks should not be concerned as they will get at least some of their savings back.
The law provides insurance of up to 17,500 somoni per depositor and that is, in theory, to be paid within two weeks of the announcement of the license withdrawal.
Once the courts appoint administrators at these banks, the savings of those customers holding more than 17,500 somoni will also be reimbursed, NBT representatives said.
Money will reportedly be paid as administrators go through the process of selling off the banks’ assets.
Tajprombank reportedly holds 117 items, including dozens of offices and an unspecified number of residential properties.
Assets on Fononbank’s books include the bank headquarters in Dushanbe, four branches, and residential properties in various regions of the country (totaling 37 times).
Tajprombank and Fononbank have been experiencing liquidity issues since 2015.
The General Prosecutor’s Office announced in early February that it is running an audit into Tojik Sodirot Bonk (TSB), Agroinvestbonk and Tajprombank.
Fononbank has had its own separate set of problems. The bank had already been audited by the authorities over suspicions that it was somehow collaborating with the banned Islamic Revival Party of Tajikistan (IRPT).
As the IRPT was banned in September 2015, Fononbank chairman Samikhon Qurbonov was fired and the lender was placed under administration, according to EurasiaNet.org.
Meanwhile, some experts say that bank liquidations show more weakness in Tajikistan’s financial system.
