The National Bank of Tajikistan (NBT) says that according to the preliminary data as of April 30, 2021, the balance sheet commitments of Agroinvestbonk have amounted to 1.380.4 billion somonis (equivalent to nearly 122 million U.S. dollars), while total assets (gross) of this lending agency are estimated at 1.826.9 billion somonis (equivalent to more than 161 million U.S. dollars).
The balance sheet commitments of Tojiksodirotbonk (TSB) for the same period have amounted to 1.263.7 billion somonis (equivalent to some 112 million U.S. dollars), while total assets (gross) of the bank are reportedly estimated at 3.922.2 billion somonis (equivalent to more than 346 million U.S. dollars), according to the regulator.
The detailed balance sheet commitments of TSB and Agroinvestbonk will be available only after appointment by a court of a special administrator and approval of the plan of liquidation of these banks, a source within Tajik central bank told Asia-Plus in an interview.
According to him, “the timing of the appointment of a special administrator by the court depends on the existing circumstances.”
“Within 60 working days from the date of the court's decision on the bankruptcy of a lending institution, a special administrator prepares and submits for approval to the court a detailed plan for the liquidation of a lending institution,” said the source. “The plan also includes the initial balance sheet of assets and commitments of a lending institution estimated at the beginning of liquidation.”
Recall, TSB and Agroinvestbonk have been experiencing financial problems since the beginning of 2016, and therefore failed to fully meet their obligations to customers.
In 2017, the government provided financial assistance to these banks. Tojiksodirotbonk received a total of 2 billion 250 million somonis, and Agroinvestbonk – 1 billion 70 million somonis.
Tajik central bank revoked their operating licenses on May 21, 2021. The regulator said in a statement on May 21 that TSB and Agroinvestbonk have been wound down because restructuring and recapitalization efforts did nothing to improve their financial situation.
The regulator notes that the Individuals Deposits Insurance Fund will refund savings in the amount of up to 30,000 somonis in the national currency and up to 21,000 somonis in the foreign currency.
Meanwhile, the Individuals Deposits Insurance Fund says it had enough reserves to pay insurance compensations to accountholders of these two banks undergoing liquidation.
According to Tajik central bank, the deposits of 23,700 (86 percent) Agroinvestbonk accountholders and 3,500 (64 percent) Tojiksodirotbonk customers will be fully paid back out of the Savings Insurance Fund. Other depositors can expect to receive partial compensation.
The rest of the money owed will be paid once the bank’s assets have been sold off, the regulator said.
TSB was established in December 1990 as the Tajik branch of the Vnesh Econom Bank of the former Soviet Union, and it initially specialized in trade and import-export banking. Later this branch was reorganized into a Joint-Stock Commercial Bank “Tajikvnesheconombank”. In June 1999 the bank was renamed and registered as Tojiksodirotbonk or TSB.
Headquartered in Dushanbe, TSB has 11 branches in the main cities of Tajikistan and covers all regions of the country.
The government now owns 85.9 percent of the shares in Tojiksodirotbonk. Before that, 58.89 percent of TSB’s shares had been owned by Closed Joint-Stock Company (CJSC) Evraziya (Eurasia), 11.65 percent by Melodiyon LTD, 10.99 percent by Ehson LTD, 7.38 percent by Media Plyus (Plus) LTD and 1.11 percent by Vostok LTD.
As of May 1, 2018, assets on TSB’s books reportedly include the bank headquarters in Dushanbe, 43 branches across the country, Closed Joint Stock Company (CJSC) Dushanbe Mall (Tajikistan’s largest shopping mall, which is home to the country's first ever hypermarket to be part of the French Auchan chain), Tajikistan Hotel in Dushanbe, eight nine-story apartment buildings in Danghara district (Khatlon province), spinning mills in Danghara and Farkhor districts (Khatlon province), cotton ginneries in Khatlon province, and auto-repair enterprise.
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 somonis in the bank. 200 million somonis went to replenishing the bank authorized capital stock and 500 million somonis were assigned for the swap.
According to data released by the government, the list of Agroinvestbonk’s assets includes more than 730 objects located in different regions of the country. Among them are the main office of the bank, 60 buildings of its branches, and five service centers. Also, this bank owns recreation areas in the Varzob gorge, various small production facilities, farms, warehouses, gas stations and car services, shopping centers. The list also includes shops, pharmacies, cafes, consumer services centers, numerous apartments and residential buildings.
As these two major banks are undergoing liquidation, new players appeared in the country’s financial market, including Kommertsbank Tajikistan and International bank of Tajikistan.
Eurasianet says the background of these players indicated that they enjoyed a considerable advantage in the form of political patronage.
Eurasianet notes that before rebranding, Kommertsbank Tajikistan used to go under the name Faroz and was a microcredit group. The lender is reportedly understood to be controlled by a group owned by President Emomali Rahmon’s son-in-law, Shamsullo Sohibov.
International Bank of Tajikistan, meanwhile, is reportedly connected to another Rahmon relative, Jamshed Gulov, the brother of Ashraf Gulov, who is married to another of the president’s daughters.
Tavhidbonk, meanwhile, has emerged as Tajikistan’s first Islamic bank. The chief executive is Muhiddin Hasanzoda, the son of Hasan Asadullozoda, the president's brother-in-law, according to Eurasianet.
