The government is currently reviewing proposals on further fate of two distressed banks – Tojiksodirotbonk (TSB) and Agroinvestbonk.
In a report released at a news conference in Dushanbe, Jamshed Nourmahmadzoda, the head of the National Bank of Tajikistan (NBT), revealed on February 9 that they have submitted several proposals for consideration to the government, including introduction of external management, restructuring of these banks and so forth.
According to him, a special working group has been set up at the Ministry of Finance. “The group will meet in the near future to review proposals on further fate of Tojiksodirotbonk and Agroinvestbonk,” Tajik central bank head noted.
On the bonds issued to recapitalize these banks, Nourmahmadzoda noted that the assistance had been provided on condition that the banks would attract investments during a year.
“But Tojiksodirotbonk and Agroinvestbonk failed to attract investments last year,” the NBT head added.
Recall, four local commercial banks, including TSB and Agroinvestbonk, have been experiencing liquidity issues since 2015. Parliament in December 2016 approved a government decree to issue bonds to recapitalize the mentioned banks and TSB and Agroinvestbonk were topped up by 2.25 billion somoni (US$284 million) and 1.7 billion somoni (US$215 million) respectively.
Both banks have embarked on a desperate fire sale as they try to scrabble back some much-needed funds to reimburse their long-suffering depositors.
Among the items for sale listed on the TSB website are the bank’s properties located in ten cities and districts of the country.
Among the items for sale listed on the Agroinvestbonk website on November 25 are cars, trucks, computers, cash registers, bank-note counters, modems, printers and even ATM machines.
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.
According to official data, the list of assets of Agroinvestbonk includes more than 730 properties located in various regions of the country, including the bank headquarters in Dushanbe, main branches in Khorog, Khujand, Kulob and 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.
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 covering all regions of the country. The bank is now 85.9 percent government-owned as a result of the bailout program.
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 Qurghon Teppa 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.
