Four troubled banks of Tajikistan, with two of them being at the state of liquidation, have been unable to settle with their customers for the fifth year already.
These banks still owe a total of more than 1 billion somonis (equivalent to almost 90 million U.S. dollars) to their customers, the head of the National Bank of Tajikistan (NBT), Hokim Kholiqzoda, told reporters in Dushanbe on February 10.
According to him, Agroinvestbonk, Tojiksodirotbonk (TSB), Tajprombank and Fononbonk still owe their customers 662 million somonis, 344 million somonis, 50 million somonis and 5 million somonis, respectively.
Recall, these four commercial banks 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 reportedly got 2.25 billion somonis ($285 million at end of 2016 exchange rates) and Agroinvestbonk 1.7 billion somonis ($215 million). Tajprombank was promised 450 million somonis ($56 million) and Fononbonk a relatively meager 80 million somonis ($10 million).
On February 24, 2017, Tajik central bank announced it was pulling the licenses of Tajprombank and Fononbonk.
It is to be noted that customers at the troubled banks insisted on determining the actual cost of their property the troubles, because they consider the properties have been put on auction at higher prices.
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. 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.
Agroinvestbonk reportedly 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. Agroinvestbonk is now 87.3 percent government-owned as a result of the bailout program.
Meanwhile, following the results of the virtual mission of the International Monetary Fund (IMF) to Tajikistan, a statement released by the IMF in September last year notes that Tajikistan is experiencing serious consequences of the coronavirus pandemic. The IMF representatives, among other things, recommended to provide effective financial support to the Deposit Insurance Fund, and to liquidate two insolvent banks. The Fund has offered the liquidation of TSB and Agroinvestbonk almost after every IMF mission to the country in recent years.
Tajik authorities, however, say that liquidation of TSB and Agorinvestbonk, which were once the systemic banks of the country, would have a domino effect and lead to severe economic consequences.
