The National bank of Tajikistan (NBT) has appointed transitional administrators at Tojiksodirotbonk (TSB) and Agroinvestbonk, which are undergoing liquidation.
According to the NBT press center, Davron Tukhtayev has been appointed transitional administrator at Agroinvestbonk and Jamshed Abdurahimov has been appointed transitional administrator at TSB.
The transitional administrators will manage these banks to secure and preserve their assets until a special administrator is appointed by a court, the NBT press center says.
In accordance with Tajikistan’s law on liquidation of lending institutions, after the appointment of a special administrator, all powers to manage a lending institution (general meeting of shareholders, board, chairperson and supervisory board) are terminated, and a special administrator becomes the only legal representative of a lending institution.
Bank liquidation process cannot exceed two calendar years. If necessary, at the request of the special administrator the court can extend the liquidation period for another two years.
These two of Tajikistan’s largest bank, both once considered too big to fail, have been undergoing liquidation at the orders of the authorities
Recall, 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.
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.
