The European Bank for Reconstruction and Development (EBRD) is currently a minority shareholder in a long-struggling Agroinvestbonk, which is finally being liquidated, with a share of 3.0 percent, Anton Usov, EBRD Chief Spokesman Central Asia, Russia, Belarus, Mongolia, told Asia-Plus in an interview.
Recall, the EBRD acquired a stake of 25 percent + 1 share in Agroinvestbonk in August 2009 for up to 50 million Tajik somonis (equivalent to 12 million U.S. dollars at that exchange rate).
“Currently, the main shareholder of Agroinvestbonk is the Government of Tajikistan, which now owns 87.3 percent of the shares in Agroinvestbonk due to additional share issues, in which the EBRD did not participate,” Usov said.
“So our share was just blurred,” he noted.
According to him, the EBRD has always been a minority shareholder in Agroinvestbonk and did not participate in the operational management of the bank.
“Lately, we haven't even been represented in the Supervisory Board,” the EBRD spokesman added.
A minority shareholder is a shareholder that owns less than 50% of the corporation's shares and doesn't have majority control over the corporation, while a majority shareholder holds more than 50% of the corporation's shares and also holds a majority of the control of the corporation.
Recall, Tajik central bank revoked their operating licenses on May 21, 2021. The National Bank of Tajikistan, or NBT, said in a statement in May that Agroinvestbonk and Tojiksodirotbonk (TSB), which have been teetering on the verge of collapse for around half a decade, have been wound down because restructuring and recapitalization efforts did nothing to improve their financial situation.
Dushanbe Economic Court has made a decision to start the process of liquidation of TSB and Agroinvestbonk, once the largest commercial banks of Tajikistan.
By court’s decisions special administrators have been appointed and they will be engaged in securing claims of depositors and creditors in accordance with the country’ law on liquidation of lending institutions.
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.
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.
