In accordance with the draft law on the national budget for 2019, Agroinvestbonk should repay 40 million somoni to the government next year. The draft law on the national budget for 2019 is currently being discussed by deputies of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament).
Recall, four local commercial banks, including Tojiksodirotbonk (TSB) and Agroinvestbonk, have been experiencing serious liquidity issues since 2015. Parliament in December 2016 approved a government decree to issue bonds to recapitalize the mentioned banks. TSB and Agroinvestbonk were topped up by 2.25 billion somoni (US$284 million) and 1.7 billion somoni (US$215 million) respectively.
The financial aid has been provided to the banks for the period of five years with a 2-percent annual interest rate. They should pay back 5 percent of these fund this year, 20 percent next year, and 25 percent each of the remaining three years.
Meanwhile, Tajik central bank head said in May this year that TSB and Agroinvestbonk can lose their operating licenses if they fail to attract additional investments in the near future.
Speaking at the Majlisi Namoyandagon session, the head of the National Bank of Tajikistan (NBT), Jamshed Nourmahmadzoda, noted on May 25 that if the mentioned banks fail to fulfill their obligations to attract additional investments and pay back financial aid provided to them by the government, specific measures will be taken against them, up to and including license revocation.
After receiving financial aid from the government in early 2017, Tojiksodirotbonk and Agroinvestbonk promised to improve their financial situation within the next three years, Tajik central bank head said.
“The management of Tojiksodirotbonk has promised to attract additional investments within the next six months and Agroinvestbonk management has promised to attract additional investments until the end of May,” Nourmahmadzoda said.
According to him, Tojiksodirotbonk is fulfilling its obligations in accordance with schedule. “They [Tojiksodirotbonk] have managed to buy back 5 percent of their shares from the government. Meanwhile, Agroinvestbonk is behind the schedule of repaying its debt to the government. The bank should settle its debt in the amount of more than 50 million somoni to the government before it pays out retail customers,” the NBT head added.
Nourmahmadzoda noted in early August this year that Agroinvestbonk’s commitments remain unfulfilled.
Agroinvestbonk holds more than 730 items located in various regions of the country, including the bank headquarters in Dushanbe, main branches in Khorog, Khujand, Kulob and Bokhtar (formerly Qurghon Teppa), 60 other branches across the country and five service centers. Besides, the bank possesses resort zones in Varzob district, small enterprises, farming units, shopping centers, shops, cafes, drugstores, refueling stations, service stations, warehouses, consumer service centers, and many apartments and residential buildings.
Founded in 1992, Agroinvestbonk, with headquarters in Dushanbe, is now 87.3 percent government-owned as a result of the bailout program. It has main branches in Khorog, Khujand, Kulob and Bokhtar and more than 60 other branches across the republic. In 2012, the government made a decision on recapitalization of Agroinvestbonk and injected 700 million somoni in the bank. 200 million somoni went to replenishing the bank authorized capital stock and 500 million somoni were assigned for the swap.
